Essay
The following financial statements have been prepared for Clearview for the month of June. The financial statements have been prepared using accrual accounting, except to the extent evident in the information provided. The business is a sole proprietorship. Trading commenced on 1 June. The business offers a window cleaning service on both cash and credit terms. Forty per cent of the work completed in June was on credit. Customers are given 30 days to pay. The proprietor invested cash of $2500 and a vehicle valued at $27 000 at 1 June.
Clearview
Statement of comprehensive income
For the month of June
Clearview
Balance sheet
As at 30 June
Discuss the performance of the business for the period as revealed by the foregoing financial statements, paying particular attention to the entity's profitability and cash position.
Correct Answer:
Verified
Key issues for discussion:
...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q35: An increase in accounts receivables and an
Q36: The methods an organisation uses to obtain
Q37: Investing all cash to maximise returns to
Q38: The most common classification for interest paid
Q39: Cash flows from operating activities is a
Q41: Which of the following bases of accounting
Q42: Paid $6000 cash for utilities What was
Q43: Which of the following would not normally
Q44: At the end of April, the Blue
Q45: When calculating the net cash flows from