ACC00724 Accounting for Managers

Question:

A.Assuming that the amounts above are correct, prepare a statement of financial position in vertical format illustrated on page 56, Example 2.3. (show your calculations)

B.Prepare a statement of changes in equity for the period and determine the amount of profit (loss) made by the business during the period of its first few weeks of existence, assuming that the owner had invested an additional $20,000 into the business just before the above amounts were calculated by the book-keeper. (must show your calculations)

C.Why is it that, in an entity’s financial statements, assets leased by an entity are sometimes shown on that entity’s balance sheet even though those assets are not legally owned? Explain. You should disclose the source of your information by referencing and support your statements by research and readings.

Required:

A.Prepare the net cash flow used in investing activities section of the statement of cash flows. Must show your calculations .

B.Prepare the net cash flow used in financing activities section on the statement of cash flows. Must show your calculations .

C.What are the limitations of a statement of cash flows? Explain. You must disclose the source of your information by referencing and support your statements by readings and research.