Apply knowledge of business transactions to create an accounting worksheet;

Apply knowledge of financial reports to examine the financial health of a reporting entity;

Develop basic Excel skills to support more efficient decision making in business.

The unit learning outcome(s) assessed is/are:

LO2 Articulate and apply knowledge of key accounting and finance concepts when analysing and interpreting financial reports;

LO4 Analyse financial information using spreadsheet skills and professionally communicate such information to interested parties.

INSTRUCTIONS

You are book keeper employed at Nancys Business Services Pty Ltd. You are asked to prepare a worksheet and a set of financial statements based on a list of business transactions in Excel and are required to perform financial analysis in Excel, based on the financial statements you have prepared.

The following business transactions and business events relate to Nancys Business Services Pty Ltd in June:

1 - Nancy commenced business with $15000 given to her by her Aunt Kate.

4 - Purchased new computer for her business $1200 on credit.

5 - Received $500 for services rendered.

6 - Paid rent on office for June $400.

7 - Negotiated with Kerry Ltd regarding possible casual employment contracts totalling $1500.

8 - Aunt Kate injected a further $2000 gift into Nancys business.

9 - Billed a client $500 for services rendered.

10 - Received an invoice for new reception desk $3400.

15 - Paid for telephone connection fee $65.

16 - Sent a quote for a large prospective job $4800.

16 - Paid gas charges $231.

23 - Received $250 for consultation work completed.

28 - Paid in full for the reception desk bought on 10 June.

30 - Paid advertising $200.

Requirements:

(a) Prepare an accounting worksheet for the business transactions in June in Excel;

(b) Prepare a statement of profit or loss and a statement of financial position in Excel for Nancys Business Services Pty Ltd for the period ending 30 June 2023;

(c) Calculate and interpret two stability ratios to evaluate Nancys financial stability in the long term (refer to session 5 for detailed information regarding ratio analysis).

(b) What additional information may be helpful to provide a more detailed assessment of Nancys financial stability?