Poppy started a business on 1 July 2011 as a personal fitness instructor and put in €8,000 capital to fund it. She prepared her first year’s accounts to 30 June 2012.
During her first year, she purchased lightweight transportable equipment: a rowing machine for €2,500, a cycling machine for €3,000, and a treadmill for €2,500. She expects all the equipment to last for five years and have no residual value.
Clients pay her €250 per month for ten sessions. During the year, she took on 12 clients, 10 of whom joined at the start, while 2 joined on 1 January 2012. All clients pay her promptly at the beginning of each month, but one customer owes her a total of €1,250 at the year-end.
Poppy's average costs of running each session are €5. She purchased consumables, including sports wear, for a total of €1,500 during the year.
Poppy made drawings of €2,000 each month.
REQUIRED:

a) Compute Poppy’s sales income for the year.

b) What will Poppy's bank balance be at 30 June 2012?

c) Prepare Poppy's income statement for the year ended 30 June 2012.

d) Prepare Poppy’s statement of financial position as at 30 June 2012.

e) Although Poppy is delighted with how well the business has done, she is exhausted by the number of hours she is working. She would like to employ an assistant, at a cost of €600 per month. Advise Poppy on the viability of employing an assistant.