Angela owns a busy taxi company (Taxi Trips) that employs a large number of taxi drivers. She also has two children (Oscar and Sandra) that need to earn some money to pay for their higher education. Rather than give them the money, she wants them to work for it by each driving a route for her business.

Oscar will be given the use of a new Mercedes to work on the airport route. This takes travelers from the airport to the center of the city and back again. The car cost 60,000 and will be sold for 24,000 in 2 years. Sandra has been told that she must work entirely in the city and that a smaller car is more suitable for this work. She will drive a new Seat that cost 20,000 and will be sold for 2,000 in 2 years. Both were given 1,000 cash.

In the first month the following activities took place. All are for cash unless otherwise stated.

Oscar: Total takings 10,000. In addition to this a customer returning to the airport did not have enough money to pay the fare of 100 but has promised to send it when they are back home. That was 3 weeks ago. Fuel cost 1000 and monthly airport license fees another 500. Cleaning costs were 300. Oscar also paid for a full years insurance that cost 2,400. During the month he had a slight accident with a barrier and needed some repairs. These have not been paid for, as the garage has not yet sent the bill. He expects it to be for 500.

Sandra: Her total takings were 7,000 with fuel costing 800. On top of the 7,000 takings, at the start of the month one customer negotiated a special deal to take her children to school every morning for two months for a total price of 300, which they paid in full. Sandra also paid for a parking fine out of the money kept in the taxi (when she just popped into the shop) of 100. Sandra decided to print 5,000 leaflets advertising her taxi service that she believes will appeal to women going out for the evening. She has used 1,000 of these leaflets but has not paid the printing cost of 500. By cleaning the car herself she reckons that she has saved at least 200. To spread the cost of the insurance she is paying 100 each month - interest free!

Angela has called her children in to assess their performance for the first month and has asked them to prepare some financial statements to help her.

Required:

a) For both Oscar and Sandra prepare a statement showing the assets and liabilities at the beginning and end of the first month.

b) Draw up a statement for both showing how they have traded in that month.

c) Who has done better? Why? What further information would prove useful?