Prepare the statement of financial position at 30 June 20X3

Reference no: EM133114051 , Length: word count:150

Case Scenario - Hien

Hien is in business selling high quality glassware to retailers. Her accountant prepares a statement of financial position each year following Hien's year end of 31 December. It is now 30 June 20X3. Hien, who has no knowledge of accounting, asks you for some assistance:

‘I know you're studying accountancy and I've got a little exercise for you. The situation is this: I seem to be doing really well if the bank account is anything to go by. At over £62,000 the balance is higher than it's ever been before. I'm wondering if I can actually spend this money. I don't need it for myself but I'm thinking about buying some shares in the glass company which supplies a lot of the goods I sell. Could you possibly draw up a statement of financial position for me for the end of June and let me know whether the business is really looking as
healthy as I think it is?'

Hien supplies the following list of balances at 30 June, prepared by herbook-keeper.

Capital 151,068

Trade payables	25,471
Cash at bank	62,479
Inventory	18,961
Trade receivables	14,371
Non-current assets - premises	74,450
Non-current assets - other	12,266
Amounts owed to HMRC	5,988

Question 1: Prepare the statement of financial position at 30 June 20X3.

Question 2: Discuss Hien's cash position. Is there any other information which might be useful to you in order to give her good advice?

Reference no: EM133114051

Questions Cloud

Prepare the cash flows from operating activities section : Staley Inc. reported the following data: Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method

Prepare modupes statement of cash flows : Prepare Modupe's statement of cash flows for the year ended 31 May 20X4 and Advise her on any actions she could take to improve the cash position

How will the tax authority decision affect after-tax cost : How will the tax authority's decision affect the after-tax cost of the kiln? The tax rate is 25%, and the opportunity cost of capital is 5%

Calculate his gross and net profit margins : Calculate his gross and net profit margins and Write a brief report - Wazir would like you to explain to him the impact of these events on his business

Prepare the statement of financial position at 30 June 20X3 : Prepare the statement of financial position at 30 June 20X3 and Discuss Hien's cash position. Is there any other information which might be useful to you

What is its net income : Precious Metal Mining has $14 million in sales, its ROE is 18%, and its total assets turnover is 2.5×. What is its net income

What amount of net income or loss did the company earn : During the year, owner invested an additional $90,000 in the business and made withdrawals worth $40,100. What amount of net income or loss did company earn

Estimate the price-sales ratio : Tambrands, a leading producer of tampons, reported a net income of $122 million on revenues of $684 million in 1992. Estimate the price-sales ratio

What is the percent of increase : Question - A laptop computer originally priced at $2,100 now sells for $2,600. What is the percent of increase

User Account

All Pages