no handwritten. i'll upvote immediately
7:17 Inbox Accounting Homework page 312 Exercise 16.7 Reporting depreciation That Bike Shop sells bikes and riding gear and has provided the following information relating to its trading activities for June 2025: $ $ Assets Bank Stock Accounts Receivable Shop fittings Less Accum. depreciation Total Assets THAT BIKE SHOP Assets and equities as at 31 May 2025 S $ Equities 1650 Accounts Payable 69 700 GST payable 40500 Loan - GH Bank 50000 Capital - Melven 17 100 32 900 144750 Total Equities 18650 1900 27000 97200 144 750 THAT BIKE SHOP Cash Flow Statement for June 2025 S s BODD 36000 800 44 800 20000 18600 100 BDO 500 CASH FLOWS FROM OPERATING ACTIVITIES Cash sales Receipts from Accounts Receivable GST received Payments to Accounts Payable Wages Interest Advertising Rent GST paid Net Cash Flows from Operating activities CASH FLOW FROM FINANCING ACTIVITIES Capital contribution Drawings Loan principal Net Cash Flows from Financing activities Net Increase (Decrease) in cash position Bank balance at start (1 June 2025) Bank balance at end (30 June 2025) 140 40240 4560 1 000 1000 6200 1500 7700 (6 700) (2140) 1650 (490) ------............... Additional information: The credit journals for June 2025 showed: Credit sales $40000 plus GST Credit purchases $15000 plus GST The inventory cards for June 2025 showed: Cost of Sales $18000 Stock on hand as at 30 June 2025 $66 700 Sales retums $1200 A physical count on 30 June 2025 revealed an inventory loss of $200. Shop fittings are depreciated at 12% p.a. The Principal of the loan - GH Bank is repayable at $3000 per annum. Required a Explain how balance day adjustments ensure Relevance in the financial reports. b Calculate Depreciation of Shop fittings for June 2025. c Prepare an Income Statement for That Bike Shop for June 2025. d Explain two reasons why That Bike Shop was able to earn a profit despite suffering a cash deficit in June 2025. e Calculate the Accounts Receivable and Accounts Payable balances as at 30 June 2025. f Calculate the GST balance as at 30 June 2025. g Prepare a classified Balance Sheet for That Bike Shop as at 30 June 2025. h Calculate Asset Turnover and Return on Assets for That Bike Shop. Comment on That Bike Shop's performance given that the industry average for ATO was 0.28 times and return on Assets was 4%. o 7:17 Inbox Accounting Homework page 312 Exercise 16.7 Reporting depreciation That Bike Shop sells bikes and riding gear and has provided the following information relating to its trading activities for June 2025: $ $ Assets Bank Stock Accounts Receivable Shop fittings Less Accum. depreciation Total Assets THAT BIKE SHOP Assets and equities as at 31 May 2025 S $ Equities 1650 Accounts Payable 69 700 GST payable 40500 Loan - GH Bank 50000 Capital - Melven 17 100 32 900 144750 Total Equities 18650 1900 27000 97200 144 750 THAT BIKE SHOP Cash Flow Statement for June 2025 S s BODD 36000 800 44 800 20000 18600 100 BDO 500 CASH FLOWS FROM OPERATING ACTIVITIES Cash sales Receipts from Accounts Receivable GST received Payments to Accounts Payable Wages Interest Advertising Rent GST paid Net Cash Flows from Operating activities CASH FLOW FROM FINANCING ACTIVITIES Capital contribution Drawings Loan principal Net Cash Flows from Financing activities Net Increase (Decrease) in cash position Bank balance at start (1 June 2025) Bank balance at end (30 June 2025) 140 40240 4560 1 000 1000 6200 1500 7700 (6 700) (2140) 1650 (490) ------............... Additional information: The credit journals for June 2025 showed: Credit sales $40000 plus GST Credit purchases $15000 plus GST The inventory cards for June 2025 showed: Cost of Sales $18000 Stock on hand as at 30 June 2025 $66 700 Sales retums $1200 A physical count on 30 June 2025 revealed an inventory loss of $200. Shop fittings are depreciated at 12% p.a. The Principal of the loan - GH Bank is repayable at $3000 per annum. Required a Explain how balance day adjustments ensure Relevance in the financial reports. b Calculate Depreciation of Shop fittings for June 2025. c Prepare an Income Statement for That Bike Shop for June 2025. d Explain two reasons why That Bike Shop was able to earn a profit despite suffering a cash deficit in June 2025. e Calculate the Accounts Receivable and Accounts Payable balances as at 30 June 2025. f Calculate the GST balance as at 30 June 2025. g Prepare a classified Balance Sheet for That Bike Shop as at 30 June 2025. h Calculate Asset Turnover and Return on Assets for That Bike Shop. Comment on That Bike Shop's performance given that the industry average for ATO was 0.28 times and return on Assets was 4%. o
