cash flow and and profit and loss statement problems?
Hi guys, Can someone help me about this. i already answered part (a), but i dont know if i am correct.and also please help me about (b).thnx. New World Hotel Limited has just started in business this year. (a)During the year purchase (all for cash) were: Beer$464,300 Wines$314,200 Spirits$230,900 At the end of the year stocks on hand were: Beer$24,000 Wines$103,900 Spirits$46,900 Required: What was the cost of the beer, wines and spirits sold by the hotel during the year? Beer:$464,300 $24,000 $440,300 Wines:$314,200 $103,900 $210,300 Spirits:$230,900 $46,900 $184,000 (b)Sales (all for cash) during the same period were: Beer$764,000 Wines$285,000 Spirits$468,800 Required: (i)Prepare a cash flow statement for the drinks trading. (ii)Prepare a profit and loss statement for the drinks trading. (iii)Which part of the trade is most profitable? Discuss.
September 26th, 2007 at 8:18 am
(i)Prepare a cash flow statement for the drinks trading.
method: Cash receipts from customers 1,517,800 Cash paid to suppliers (1,009,400) Cash generated from drinks operations 508,400 Indirect method: Profit from drinks operations 683,200 Increase in inventories (174,800) Cash generated from drinks operations 508,400 (ii)Prepare a profit and loss statement for the drinks trading.
of drinks 1,517,800 less cost of drinks sold (834,600) Gross profit 683,200 (iii)Which part of the trade is most profitable? Discuss.
profits and GP margins were as follows: Beer 323,700 (42.37%) Wines 74,700 (26.21%) Spirits 284,800 (60.75%) Spirits brought in the highest GP margin, so it's the most profitable of the 3 types of drinks.