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FSA Assignment 01 | PDF | Cash Flow Statement | Dividend
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FSA Assignment 01

ABC restaurant started operations in 2019, introducing $1 million in capital. It sold $6.5 million in food and beverages for cash, and $1.5 million in multi-year memberships. Expenses included $100,000 in depreciation, $3 million in salaries, $250,000 in rent, and $2 million in cost of goods sold. The business borrowed $700,000 at 8% interest and repaid $350,000, paying $42,000 in interest. Net income of $2.6 million was generated, with half distributed as dividends.

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256 views3 pages

FSA Assignment 01

ABC restaurant started operations in 2019, introducing $1 million in capital. It sold $6.5 million in food and beverages for cash, and $1.5 million in multi-year memberships. Expenses included $100,000 in depreciation, $3 million in salaries, $250,000 in rent, and $2 million in cost of goods sold. The business borrowed $700,000 at 8% interest and repaid $350,000, paying $42,000 in interest. Net income of $2.6 million was generated, with half distributed as dividends.

Uploaded by

KAVYA GUPTA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Business Activity Income Statement

ABC is a high end restaurant which started operations Particulars Amount


on 1st Jan 2019. Following transactions Revenue 6,500,000
occurred during 2019 Membership 1,500,000
Capital introduced Rs.1,000,000, on 1/1/19
Fixed Assets bought Rs.500,000, depreciation 20% SLM
5 Waiters and an accountant were hired on 01/01/19
at Rs.250,000 per month, for the full year Exp
Office rental of 250,000 for full year, paid on 1/1/19 Depn 100,000
Food & Beverages sold for cash Rs.6,500,000 Salary 3,000,000
Food and Beverage items taken on credit worth Rent 250,000
Rs.2,000,000 during the year. Of this Rs.300,000 was COGS 2,000,000
Debt Interest 42,000

unpaid at the end of year


5 year memebership scheme for Rs.250,000 each was PROFIT 2,608,000
offered. They sold 30 memberships in cash in 2019
On 1/1/19 Rs.700,000 was borrowed at rate of 8%
Out of this Rs.350,000 was repaid on 20/6/19.
Interest in full was pid on 31/12/19.
On 31/12/19 half of the Net Income was distributed
as dividends to shareholders

Build the Income Statement, Balance Sheet


and Cash Flow Statement as of 31/12/2019
Balance Sheet Cash
Liability Mo-0 Mo-1 Assets Mo-0 Mo-1
EQUITY 1,000,000 Cash 8,554,000 1,000,000
Retained earnings 1,304,000 Fixed Asset 400,000 (500,000)
DEBT 350,000 (3,000,000)
(250,000)
Liability 6,500,000
Accounts Payable 300,000 (1,700,000)
Unearned Revenue 6,000,000 7,500,000
350,000
(42,000)
(1,304,000)

8,954,000 8,954,000 8,554,000


CHECK -
Cash Flow Statement

Net PROFIT 9,008,000

Cash Flow from Operating 9,008,000

Purchase of FA (500,000)
(500,000)

Equity Raised 1,000,000


Debt 350,000
Divident Paid (1,304,000)
46,000

NET CHANGE 8,554,000

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