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Joey manages his own computer business trading as Atrium Enterprises. He is concerned about his cash flow. He provides the following information. ATRIUM ENTERPRISE Income
Joey manages his own computer business trading as Atrium Enterprises. He is concerned about his cash flow. He provides the following information. ATRIUM ENTERPRISE Income Statement for the year ended 30 June 2019 Sales Cash Credit 450000 Less Cost of Goods Sold Stock 240000690000 Purchase 80000 Cartage inwards 565000 Less stock at end Gross Profit 5000 650000 Add Other Revenue Discount Revenue 12 Less Selling Expense Advertising 11000 Sales wages 74000 Depreciation on Delivery Van 400089000 Less Administrative Expense Depreciation on Fixtures Insurance 5000 30008000 Less Finance Expense Bad Debts 6000 Discount Allowed 10007000 Net Profit 33200 Comparative Balance Sheets as at 30 June 2019 Statement of Cash flow of Atrium Explain how it was possible for Joey to achieve a profit of $33200 while having an increase in cash of only $8000 for the same period
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