Calculate and interpret two stability ratios

Assignment Help Accounting Basics

Reference no: EM133415867

Case: The following business transactions and business events relate to Nancy's Business Services Pty Ltd in June:

1 - Nancy commenced business with $15 000 given to her by her Aunt Kate.

4 - Purchased new computer for her business $1200 on credit.

5 - Received $500 for services rendered.

6 - Paid rent on office for June $400.

7 - Negotiated with Kerry Ltd regarding possible casual employment contracts totalling $1500.

8 - Aunt Kate injected a further $2000 gift into Nancy's business.

9 - Billed a client $500 for services rendered.

10 - Received an invoice for new reception desk $3400.

15 - Paid for telephone connection fee $65.

16 - Sent a quote for a large prospective job $4800.

16 - Paid gas charges $231.

23 - Received $250 for consultation work completed.

28 - Paid in full for the reception desk bought on 10 June.

30 - Paid advertising $200.

Requirements:

(a) Prepare an accounting worksheet for the business transactions in June in Excel;

(b) Prepare a statement of profit or loss and statement of financial position in Excel for Nancy's Business Services Pty Ltd for the period ending 30 June 2023;

(c) Calculate and interpret two stability ratios to evaluate Nancy's financial stability in the long term (refer to session 5 for detailed information regarding ratio analysis).

(b) What additional information may be helpful to provide a more detailed assessment of Nancy's financial stability?

Reference no: EM133415867

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