Gold Coast Customs was organised on 1 July 2016. At the end of the first year of operations the owner prepared the following summary of its activities.
1. Customised car services performed for customers, $137 750, of which $22 400 remained uncollected at the end of the year.
2. Cash borrowed from the bank, $80 000.
3. Equipment purchased for $45 000 cash at the end of the year to be used in the business for two years starting the next year.
4. Wages earned by employees, $67 600, of which 20 per cent remained unpaid at the end of the year.
5. Other operating expenses, $46 020, of which $12 000 remained unpaid at the end of the year.
Show the effect on net profit and cash of each of the above transactions.