1. You are required to prepare the cash flow statement using both the Direct and Indirect method.
2. Interpret and critically evaluate the contribution of key financial statements in successful management of the organisation.
Further you are required to perform a Break Even analysis using the below given details and provide answers for the mentioned questions.
Section B Upon the completion of the above project, you are required to contribute in preparation of financial reports of one of the subsidiary unit of your company. Prepare a report to be presented to your BOD's, emphasizing why financial and legal aspects are important for any business and how they impact on achieving the objectives the organisation. Your report must cover the following details: -The company started on 1st January 2020 , When it issued 60,000 shares of $1 par value common stock for $60,000 cash. The company rented its office space and furniture and equipment, and it performed its services throughout the first year. The balance sheets at the beginning and end of the year ?mn -......-. .11 Additional Information: Examination of selected data indicates that: a) A dividend of R.14,000 was paid during the year. b) During the year company has purchased noncurrent assets worth Rs. 50,000 and sold noncurrent assets worth Rs. 100,000 . C) All cash, account payables and receivables incurred based on the transactions carried out during the month (Opening Balance =0 ) d) Tax shown has been paid in full 1. You are required to prepare the cash flow statement using both the Direct and Indirect method. 2. Interpret and critically evaluate the contribution of key financial statements in successful management of the organisation. Further you are required to perform a Break Even analysis using the below given details and provide answers for the mentioned questions. 1. How many products does the business have to sell to break even in 2020 ? 2. If sales for 2020 were 1,000,000 units, what level of profit would ABC earn? [Assume that fixed costs, variable costs per unit and average selling price are unchanged.] 3. Critically evaluate your answers and advise the company. As the final contribution to the report, elaborate on the Key legislation and regulations that have an impact over the small scale businesses. Discuss the implications of these key legislation and regulations for the current operations and future expansions of your organization. Section B Upon the completion of the above project, you are required to contribute in preparation of financial reports of one of the subsidiary unit of your company. Prepare a report to be presented to your BOD's, emphasizing why financial and legal aspects are important for any business and how they impact on achieving the objectives the organisation. Your report must cover the following details: -The company started on 1st January 2020 , When it issued 60,000 shares of $1 par value common stock for $60,000 cash. The company rented its office space and furniture and equipment, and it performed its services throughout the first year. The balance sheets at the beginning and end of the year ?mn -......-. .11 Additional Information: Examination of selected data indicates that: a) A dividend of R.14,000 was paid during the year. b) During the year company has purchased noncurrent assets worth Rs. 50,000 and sold noncurrent assets worth Rs. 100,000 . C) All cash, account payables and receivables incurred based on the transactions carried out during the month (Opening Balance =0 ) d) Tax shown has been paid in full 1. You are required to prepare the cash flow statement using both the Direct and Indirect method. 2. Interpret and critically evaluate the contribution of key financial statements in successful management of the organisation. Further you are required to perform a Break Even analysis using the below given details and provide answers for the mentioned questions. 1. How many products does the business have to sell to break even in 2020 ? 2. If sales for 2020 were 1,000,000 units, what level of profit would ABC earn? [Assume that fixed costs, variable costs per unit and average selling price are unchanged.] 3. Critically evaluate your answers and advise the company. As the final contribution to the report, elaborate on the Key legislation and regulations that have an impact over the small scale businesses. Discuss the implications of these key legislation and regulations for the current operations and future expansions of your organization
