Creassos Co. was formed in July 2010 with €20,000 of capital. €7,500 of this was used to purchase equipment. The owner budgeted for the following:
|
Sales |
Receipts from customers |
Purchases |
Payments to suppliers |
Wages |
Other expenses |
|
|
July |
20,000 |
— |
8,000 |
5,000 |
3,000 |
2,000 |
|
Aug |
30,000 |
20,000 |
15,000 |
10,000 |
4,000 |
2,000 |
|
Sept |
40,000 |
30,000 |
20,000 |
20,000 |
5,000 |
3,000 |
Wages and other expenses are paid in cash. In addition to the above, depreciation is €2,400 per annum. No inventory is held by the company.
- Calculate the profit for each of the three months from July to September and in total.
- Calculate the cash balance at the end of each month.
- Prepare a Statement of Financial Position at the end of September.