Question

Use these transactions to create an Income Statement, Balance Sheet, and Cash Flow Statement.

Invested 415.55 of cash into business

paid $100 to design shirt

purchased and received 12 large shirts for 107.4, 7.4 shipping, and 9.67 tax

purchased and received 3 XL shirts for 26.85, 4.78 shipping, and 2.42 tax

purchased and received 12 M shirts for 107.4, 7.07 shipping, and 9.67 tax

purchased and received 3 S shirts for 26.85, 3.62 shipping, and 2.42 tax

sold 1 shirt for $20

sold 1 shirt for $15

sold shirt $12

sold 1shirt for $15

sold 9 shirts for $15

gave 1 shirt to owner

Sold 15 for $15

Lost 1 shirt

purchased and received 12 large shirts for 124.47

purchased and received 1 large shirts for 12.96

purchased and received 3 2XL shirts for 39.78

purchased and received 12 M shirts for 124.14

purchased and received 3 S shirts for 32.89

sold 1 shirt for 15.

gave 1 shirt away.

sold 3 for 15 each

gave 2 to Rosemary

sold 2 for $15 each

gave 1 to Lisa

sold 1 for 15

sold 1 for 15

sold 1 for 15

sold 2 for 15

Answer 1

IF YOU HAVE ANY DOUBTS COMMENT BELOW I WILL BE TTHERE TO HELP YOU..ALL THE BEST..

AS FOR GIVEN DATA..

Invested 415.55 of cash into business

paid $100 to design shirt

purchased and received 12 large shirts for 107.4, 7.4 shipping, and 9.67 tax

purchased and received 3 XL shirts for 26.85, 4.78 shipping, and 2.42 tax

purchased and received 12 M shirts for 107.4, 7.07 shipping, and 9.67 tax

purchased and received 3 S shirts for 26.85, 3.62 shipping, and 2.42 tax

sold 1 shirt for $20

sold 1 shirt for $15

sold shirt $12

sold 1shirt for $15

sold 9 shirts for $15

gave 1 shirt to owner

Sold 15 for $15

Lost 1 shirt

purchased and received 12 large shirts for 124.47

purchased and received 1 large shirts for 12.96

purchased and received 3 2XL shirts for 39.78

purchased and received 12 M shirts for 124.14

purchased and received 3 S shirts for 32.89

sold 1 shirt for 15.

gave 1 shirt away.

sold 3 for 15 each

gave 2 to Rosemary

sold 2 for $15 each

gave 1 to Lisa

sold 1 for 15

sold 1 for 15

sold 1 for 15

sold 2 for 15

Profit & Loss Account For The Year

Particulars	Amount	Particulars	Amount
To Purchase	602.74	By Sales	587.00
To Design Expenses	100.00	By Closing Stock	214.71
TO Loss Of Inventory	8.95
To Shirts given free
Rosemary (M SIze)	17.96
Unknown (M SIze)	8.98
Lisa (S Size)	8.95
To Profit	54.13

Working Notes, Assumptions :-

Inventory FIFO Basis

	XL	L	M	S	2XL
	3 Shirts 26.85	12 Shirts 107.74	12 Shirts 107.74	3 Shirts 26.85	3 Shirts 39.78
	1 Sold	1 Sold	1 Sold	1 For owner
	1 XL Lost	1 Sold	8 Sold	3 Shirts 32.89
		9 Sold	12 Shirt 124.14	1 Shirt lisa
		7 Sold	1 shirt gave
		12 Shirts 124.47	2 Shirts rosemary
		1 Shirt 12.96
		1 sold
		3 sold
		2 sold
		1 Sold
		1 Sold
		1 Sold
		2 Sold
Remaining Inventory	1 Shirt @ 8.95	-4 Shirts (This is error in question)	12 Shirts @ 124.14	1 Shirt @ 8.95 & 3 Shirts @ 32.89	3 Shirts @ 39.78

Balance Sheet (Extract)

Liabilities	Amount	Assets	Amount
Capital	406.60	Closing Stock	214.71
Profit	54.13	Cash & Bank	299.81

Capital Account Balance = $ 415.55 - $ 8.95 (Drawing of inventory for personal purpose) = $ 406.60

As qty sold of size L is more than qty purchase our balance sheet is not matched by 53.79.

Cash Flow Statement

Particulars	Amount
A. Cash Flows From Operations Activities
Net Profit From P&L	54.13
- Adjustement For non cash & non Operating items
Loss due to loss of inventory	8.95
Inventory given for free	35.89
- Adjustement For Changes In working Capital
Increase in Inventory	(214.71)
Net inflow from operations	(115.74)
B. Cash Flows From Financing Activities
Cash Introduced	415.55
Net Cash Flow During the year (A+B)	299.81

I HOPE YOU UNDERSTAND..

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