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.