Managerial Accounting

"BALANCE SHEET OF VICTORIA KITE COMPANY , MELBOURNE AS ON 31st JANUARY 28th OF FEB 31st of MARCH ,2005 "As on 31-1-05 "As on 28-2-05 "As on 31-3-05 "As on 31-1-05 "As on 28-2-05 "As on 31-3-05 "Assets "Amount in "Amount in "Amount in "Liabilities "Amount in "Amount in "Amount in "Cash "5100 "37691 "32991 "Accounts Payable "0 "35450 "18000 "Accounts Receivable 1 "26800 "35700 "22200 "Dividend Payable "0 "0 "1500 "Inventory 2 "8050 "6000 "6000 "Rent Payable "0 "0 "16750 "Unexpired Insurance "1375 "1250 "1125 "Loan Payable "15629 "0 "0 "Fixed Assets ( net "12250 "12000 "14750 "Total "53575 "92641 "77066

"15629 "35450 "36250 "1 .Outstanding accoutns receivable are derived by "taking into account the starting accounts receivable . adding sales and then deducting collections "January ,2005 "Feb ,2005 "March ,2005 "Op Bal "12000 "26800 "35700 "Add : Sales "62000 "75000 "38000 "Less : Collection "47200 "66100 "51500 "26800 "35700 "22200 "2 .Each month inventory is calculated by taking the Inventory opening balance , deducting the cost of goods sold , and adding necessary purchases required to bring the closing balance total upto 6000 .The outstanding in accounts payable will be reflected by the purchases "INCOME STATEMENT OF VICTORIA KITE COMPANY , MELBOURNE AS ON JANUARY ,FEB MARCH 2005 "EXPENSES "INCOME "In "In "In "In "Jan-02 "Feb-03 "Mar-02 "Jan-02 "Feb-03 "Mar-02 "Sales "62OOO "75000 "38000 "Less : Expenses "Wages Salaries "15000 "15000 "15000 "Insurance Expired "125 "125 "125 "Depreciation "250 "250 "250 "Miscellaneous Expenses "2500 "2500 "2500 "Cost of Goods Sold 1 "31000 "37500 "19000 "Rent "250 "250 "16750 "Interest Expenses 2 "129 "130 "Dividend "1500 "Total Expenses "49254 "55755 "55125 "Net Income "12746 "19245 "-17125 "Notes "Cost of Goods Sold :1 "Sales "62OOO "75000 "38000 "Number of units sold "Sales / selling Price ie 8 "7750 "9375 "4750 "cost of goods sold "No of units sold 4 "31000 "37500 "19000 "Interest Expenses :2 "Calculation of Interest expenses is arrived at by taking the outstandign loan balance plus any accrued interest and multiplying ( 0 .1 /12 "Hence the loan is outstanding for two periods , the total payment is equal to the loan value multiplied by ( 1 (0 .1 /12 )6 "^2 . However the interest expense for the purpose of Income statements must be the amount accrued in each month rather than the two months total "The unexpired insurance total is debited by the Insurance expired every month , as no insurance payments are made during the periods in question "Wages and salaries , Misc Expenses the Rent 250 per month are paid as they are incurred and hence nothing accrues on the balance sheet "The Rent payable as a percentage of sales and dividend payable are accrued in March , so they appear on the Income statement for March 05 eventhough the cash payment for these items will not paid untill April .Hence the cash associated with the December rent payable and dividend payable appears in January statement of Cash Flows that is when the cash is actually paid "CASH FLOW STATEMENT OF VICTORIA KITE COMPANY , MELBOURNE FOR JANUARY , FEBRUARY MARCH 2005...