From the following information relating to Black Ltd you are required to prepare a

(a)Profit & loss statement for the year ended 30 June 2020, and

(b)Balance sheet as at 30 June 2020

$

Sales

190 000

Drawings

13 000

Inventory 1 July 2019

18 000

Capital

151 500

Purchases

118 000

Motor vehicles

24 000

Land & buildings

130 000

Advertising

1 500

Office salaries

23 000

Insurance

2 000

Telephone

1 100

Light & power

1 400

Rates & taxes

1 200

Stationery

1 300

Rental income

12 000

Accounts receivable

16 000

Allowance for doubtful debts

1 000

Accounts payable

16 000

GST payable

5 000

Cash at bank

11 000

Interest received

1 000

Investments

12 000

Computer equipment

3 000

Inventory 30 June 2020

19 000

PRACTICAL TASK 4 (PC: 1.1, 1.2, 1.3, 1.4, 2.1, 2.2, 2.3, 3.1, 3.2, 3.3, 4.1)

Black Ltd produces a product for travelling. You have been asked to prepare the monthly budget for the quarter ending 30 June of the current year.

The marketing manager has forecasted the sales for the three months as follows:

April1 000 units

May1 200 units

June1 000 units

The selling price per units is $300

The business plans to have 40% of the next month's sales in closing stock at the end of the previous month.

Opening April stocks will be 400 units.

Closing stocks at the end of June are expected to be 500 units

All sales are made on credit. The money is expected to be received as follows:

10% in the month of sale

75% in the month following sale

15% in the second month following sale

Amounts to be collected in April and May in respect of previous months sales are $200,000 and $80,000 respectively

Each unit produced requires 8 metres of materials at $10 per metre

Direct labour costs $36 per hour with 4 hours needed for each unit produced

Other variable costs are expected to be $20 per unit

Fixed manufacturing costs amount to $8 000 per month, but are charged into production at $20 per unit

Fixed selling and administration costs are $20,000 per month

All expenses, apart from labour, are paid for at the end of the month after the month of purchase. Amounts paid in April in respect of costs (excluding GST) from the previous month are:

Materials$20 000

Other variable costs$10 000

Fixed manufacturing costs$8 000

Fixed selling & administration costs$20 000

The balance of GST collected and paid for in a particular month is forwarded to, or refunded by, the ATO in the following month. The balance of GST owing from March is $15 000

The opening April cash balance is expected to be $10 000

You are required to prepare the following budgets for the three months of April, May and June:

(a)Sales (in units and $)

(b)Production

(c)Materials (in units and $)

(d)Direct Labour

(e)Other variable costs

(f)Cost of Goods sold

(g)Schedule of Collection Budget

(h)Cash Budget

(i)Profit and Loss Statement for the quarter ended 30 June of the current year

PRACTICAL TASK 5 (PC: 4.1, 4.2)

The following information concerns the outstanding sales of Black Ltd for the months January to May of the current year. From the information below you are required to prepare an aged debtors' analysis and make any necessary comments.

Customer

Total

May

April

March

Feb

Jan

A Pty Ltd

4,200

2,600

1 600

B Ltd

4,000

4,000

C & Co

400

100

100

200

D Ltd

3,000

2,000

1 000

During the month of June the following transactions took place:

A Pty Ltd paid $2,000 off their May outstanding sales and purchased another $1 400 worth of goods on credit

B Ltd paid their May account in full and purchased another $3,400 worth of goods on credit

D Ltd paid their April balance and purchased another $800 worth of goods on credit