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You and a friend decided to form a partnership business as an Information Systems Consultant Firm a few years ago. It has been fairly successful

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You and a friend decided to form a partnership business as an Information Systems Consultant Firm a few years ago. It has been fairly successful in winning contracts and tenders. You both would like to expand your business and employ a few graduates in information systems to give the graduates an opportunity to gain valuable experience. You have both decided to purchase some vehicles and equipment as part of your expansion plans, but would need to borrow money from a bank to finance the purchases. You both approached a Westpac Bank Manager, who has requested some financial statements as a basis for assessment whether or not they will grant loan facilities. Records were available to establish the following for the year ended 30 June 2019: Records S Cash in the business bank account at 30 June 2019 3 000 IS consultation services billed to clients 400 000 Amounts customers owe the firm at 30 June 2019 (already billed) 10 000 Cash paid to IS subcontractors 120 000 Amounts owed to IS subcontractors 20 000 Other IS service expenses incurred and paid for 150 000 Motor Vehicle 30 000 Office Equipment 25 000 Motor Vehicle running expenses paid 5 000 Electricity, telephone and Internet expenses 4 000 Office rent for June 2019 still outstanding 2 500 Cash drawn out of the business bank account for personal use 8 000 Required) A. Based on the records provided, prepare an income statement and balance sheet for the year ended 30 June 2019. Use Microsoft Excel and have a separate sheet for each requirement i.e. records, income statement, balance sheet. B. Discuss the elements of the financial statements you have prepared in Part A above which the bank manager might be interested in when assessing whether or not to grant loan facilities to your firm. discussion. Use Microsoft Word and paste the relevant elements from Excel as a basis for your C. What information, in addition to the income statement and balance sheet, might the bank manager be interested in looking at before making a decision? What Information ? A continuation from your requirement in Part B using Microsoft Word

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