BUSINESS 114 – Accounting for Decision Making 03 SEMESTER ONE 2024C/C++

Java Python BUSINESS 114 – Accounting for Decision Making

Assignment 03

SEMESTER ONE, 2024

Due date: 4 pm (NZT) Friday 4 October 2024

Question 1: Business Transactions (22 marks)

(a) Partially Completed Worksheet for Sunny Sands Ltd for August 2024 (9 marks)

	Cash	Accounts Receivable	Inventory	Equipment	Accounts Payable	Bank Loan	Unearned Revenue	Capital	Revenue	Expense	Impact on Cash Flow
Open Bal	$30,000	$5,600	$47,500	$25,200	$9,100	$39,000		$60,200
(i)	-$4,000		$7,000								Operating Outflow
(ii)	$1,500
(iii)	-$1,500										Operating Outflow
(iv)	-$3,000
(v)										-$4,500	Operating Outflow
(vi)	$55,000								$80,000		Operating Inflow
										-$48,000
(vii)	-$19,800
(viii)
(ix)
End Bal

(b) Income Statement (4 marks)

(c) Balance Sheet (Vertical Method) (9 marks)

Question 2 - Transaction Analysis and Financial Accounting (19 marks)

(a)(i) Deposit on 1^st May 2024 (3 marks)

Balance sheet
Income statement
Cash flow statement

(a)(ii) Remaining balance on 5^th June 2024 (3 marks)

Balance sheet
Income statement
Cash flow statement

(b)  Service delivered on 15^th June 2024 (3 marks)

Balance sheet
Income statement
Cash flow statement

(c) Ethical considerations (4 marks, max 200 words):

(d)(i) Equipment purchased on 20^th June 2024 (3 marks)

Balance sheet
Income statement
Cash flow statement

(d)(ii) Financial implications (3 marks, max 150 words):

Question 3: Financial Statement Analysis (19 marks)

(a) Ratios (9 marks)

	Company	Industry
Telstra Group Limited
ROE		50%
Profit Margin		18%
Current Ratio		1.1
Debt Ratio		55%
Wesfarmers Limited
ROE		25%
Profit Margin		10%
Current Ratio		1.4
Debt Ratio		50%
Quantas Airways Limited
ROE		4%
Profit Margin		12%
Current Ratio		1