I need the solution of case study ( big city courier BCC) 9A97B009.

Page 5 SAS Exhibit 3 BIG CITY COURIER BALANCE SHEET as at 31-Jan-97 28-Feb-97 31-Mar-97 Current Assets Accounts Receivable Deposits Paid Total Current Assets 45,592 900 46,492 52,789 900 53,689 62,053 900 62,953 Fixed Assets Total Assets 4258 50,750 4,435 4,435 58,124 67,388 Liabilities Overdraft Accounts Payable Sales Tax Payable Total Liabilities 9,231 411 23,967 33,609 11,580 271 26,212 38.063 13,217 1.100 28,265 42,582 Equity Capital Retained Earnings Total Equity 10,544 6.597 17.141 9,057 11,004 20,061 7.476 17,330 24,806 Total Liabilities and Equity 50,750 58.124 67,388 Page 6 9A97B009 Exhibit 4 BIG CITY COURIER INCOME STATEMENTS for the months ended 31-Jan-97 24,330 28-Feb-97 34,534 31-Mar-97 Year-to-Date 39.114 97,978 Sales (Net of Sales Tax) 21,858 2,300 2.221 915 700 Expenses Drivers' Commissions Salaries & Wages Marketing & Advertising Radio (Lease, Airtime, Repairs) Rent Utilities Overdraft Interest & Bank Charges Automobile Repairs & Expenses Other Expenses Total Expenses Net Profit 15,399 2,300 2,221 870 700 501 211 2.673 1.906 26.781 (2.451) 494 24,759 2.300 2,221 917 700 497 223 333 838 32.788 6.326 62,016 6,900 6,663 2,702 2,100 1,492 649 3.253 3,920 89,695 8,284 Institute of Trades and Technology until May 03, 2019. weters is a copyright violation Formel 215 247 1,176 30.126 4,408 Exhibit 1 BIG CITY COURIER BALANCE SHEET as at December 31 1996 1995 Current Assets Accounts Receivable Deposits Paid Total Current Assets 47,526 1.213 48,739 18,493 900 19,393 Fixed Assets Total Assets 4.258 52,997 3,947 23,340 Liabilities Overdraft Accounts Payable Sales Tax Payable Total Liabilities 9,688 22,386 32,074 7,044 274 3,509 10,827 Equity Capital Retained Earings Total Equity 11,876 9,047 20.923 30,302 (17,789) 12,513 Total Liabilities and Equity 52.997 23.340 Exhibit 2. BIG CITY COURIER INCOME STATEMENTS for the period ended December 31 (one year (8 months) 1995 1996 Estudy assignment=1 budgeting and finance - Protected View - Saved to this PC- t References Mailings Review View Help Grammarly ernet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing The report should be approximately 4 pages long. Arial 10-11 font and multiple spacing 1.5. It will be graded on: content, spelling, grammar, formatting and style. Containing the following headings: Introduction, Background, Alternatives (analysis), Proposed Solution, and Recommendation (implementation). The report should answer the following questions: 1. How important is cash to a business? 2. Prepare the cash flow statement for Big City Courier for January, February, March 1997. 3. How is BCC financing its day-to-day operations? 4. What should Geoffrey Taylor, owner of BB, do to improve the cash situation? To help you complete this analysis and study, you should understand: a. The courier business and the competitive environment b. The importance of cash to a business C. The impact of rapid growth on cash, and the financing gap between receivables and payables d. The components of the cash flow statement and how to prepare one e. The cash flow statement and the stages of business development f. The linkages between the choices that businesses have to raise cash and the components of the cash flow statement Please note, often when conducting a study, additional research may be required to better understand the problem and its context as suggested in a-f. HINTS: A) Consider BCC and what makes it successful in its environment. B) Consider alternatives for increasing cash from the different cash flow statement activities, i.e. operating activities, financing activities, and investment activities. C) Will this business survive in the long term? o W Page 5 SAS Exhibit 3 BIG CITY COURIER BALANCE SHEET as at 31-Jan-97 28-Feb-97 31-Mar-97 Current Assets Accounts Receivable Deposits Paid Total Current Assets 45,592 900 46,492 52,789 900 53,689 62,053 900 62,953 Fixed Assets Total Assets 4258 50,750 4,435 4,435 58,124 67,388 Liabilities Overdraft Accounts Payable Sales Tax Payable Total Liabilities 9,231 411 23,967 33,609 11,580 271 26,212 38.063 13,217 1.100 28,265 42,582 Equity Capital Retained Earnings Total Equity 10,544 6.597 17.141 9,057 11,004 20,061 7.476 17,330 24,806 Total Liabilities and Equity 50,750 58.124 67,388 Page 6 9A97B009 Exhibit 4 BIG CITY COURIER INCOME STATEMENTS for the months ended 31-Jan-97 24,330 28-Feb-97 34,534 31-Mar-97 Year-to-Date 39.114 97,978 Sales (Net of Sales Tax) 21,858 2,300 2.221 915 700 Expenses Drivers' Commissions Salaries & Wages Marketing & Advertising Radio (Lease, Airtime, Repairs) Rent Utilities Overdraft Interest & Bank Charges Automobile Repairs & Expenses Other Expenses Total Expenses Net Profit 15,399 2,300 2,221 870 700 501 211 2.673 1.906 26.781 (2.451) 494 24,759 2.300 2,221 917 700 497 223 333 838 32.788 6.326 62,016 6,900 6,663 2,702 2,100 1,492 649 3.253 3,920 89,695 8,284 Institute of Trades and Technology until May 03, 2019. weters is a copyright violation Formel 215 247 1,176 30.126 4,408 Exhibit 1 BIG CITY COURIER BALANCE SHEET as at December 31 1996 1995 Current Assets Accounts Receivable Deposits Paid Total Current Assets 47,526 1.213 48,739 18,493 900 19,393 Fixed Assets Total Assets 4.258 52,997 3,947 23,340 Liabilities Overdraft Accounts Payable Sales Tax Payable Total Liabilities 9,688 22,386 32,074 7,044 274 3,509 10,827 Equity Capital Retained Earings Total Equity 11,876 9,047 20.923 30,302 (17,789) 12,513 Total Liabilities and Equity 52.997 23.340 Exhibit 2. BIG CITY COURIER INCOME STATEMENTS for the period ended December 31 (one year (8 months) 1995 1996 Estudy assignment=1 budgeting and finance - Protected View - Saved to this PC- t References Mailings Review View Help Grammarly ernet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing The report should be approximately 4 pages long. Arial 10-11 font and multiple spacing 1.5. It will be graded on: content, spelling, grammar, formatting and style. Containing the following headings: Introduction, Background, Alternatives (analysis), Proposed Solution, and Recommendation (implementation). The report should answer the following questions: 1. How important is cash to a business? 2. Prepare the cash flow statement for Big City Courier for January, February, March 1997. 3. How is BCC financing its day-to-day operations? 4. What should Geoffrey Taylor, owner of BB, do to improve the cash situation? To help you complete this analysis and study, you should understand: a. The courier business and the competitive environment b. The importance of cash to a business C. The impact of rapid growth on cash, and the financing gap between receivables and payables d. The components of the cash flow statement and how to prepare one e. The cash flow statement and the stages of business development f. The linkages between the choices that businesses have to raise cash and the components of the cash flow statement Please note, often when conducting a study, additional research may be required to better understand the problem and its context as suggested in a-f. HINTS: A) Consider BCC and what makes it successful in its environment. B) Consider alternatives for increasing cash from the different cash flow statement activities, i.e. operating activities, financing activities, and investment activities. C) Will this business survive in the long term? o W