Question

In: Accounting

Sami sells banana and groundnuts at Dansoman Polyclinic. In view of an impending hospital infrastructure expansion...

Sami sells banana and groundnuts at Dansoman Polyclinic. In view of an impending hospital infrastructure expansion program, she has obtained permission to sell waakye on the hospital compound. She visited L400 Micocredit for a loan. You gathered the following information in your interaction with her.

• She needs to buy a cooking pot valued at $185.00. She owns a pan used for selling the vaakye with the current value of $ 80.00

• Her locally manufactured coal pot uses LPG gas and can prepare food on a relatively larger-scale, is estimated at $80.00.The LPG cylinder costs $ 70.00.

• She has arranged with the carpenter to prepare a table, a hi$ stool, two long benches and a long table which will enable her customers eat at her joint. The total cost of the furniture is $ 420.00. Her husband has been able to raise $200.00 cash for this purpose. The carpenter has agreed to give her two months to settle her bill.

• Eating plates, spoons and other cooking utensils will cost her $ 350.00. Her savings balance at L400 Finance is $ 250.00. The woman selling these items has agreed on a one-month trade credit. However, she must make an initial payment of $ 100.00 before she will be allowed to take the items.

• She will stock-up the rice and beans for at least a month in order to avoid unplanned price changes. It takes 3 days to finish using a mini bag of rice valued at $ 180.00 and twice that period to fully use up a mini bag of beans valued at $ 250.00. She has negotiated for a month’s trade credit with her supplier.

• She requires about $ 250.00 to finance fish, meat and all the other ingredients for preparing he pepper and stew. She requires about $ 100.00 to provide for any unexpected change in prices of the ingredients.

• She will be able to raise about $ 250.00 from selling the remaining stock of banana and groundnuts

a. Prepare a Statement of Affairs schedule for Sami at the beginning of the business in order to determine the amount of loan she may requires for the business.

Solutions

Expert Solution

Particulars Buying value Resale value/ funds owned Funds required Immediately required After 1 months After 2 months Funds in L400 Finance/ cash in hand
For cooking Pot                                                      185                                                     80                                                              105                                             105
LPG Cylinder Cost                                                        70                                                      -                                                                   70                                               70
Furniture                                                      420                                                   200                                                              220                        220
Utensils                                                      350                                                   100                                                              250                        250                                      150
Rice bag                                                  1,800                                                      -                                                             1,800                     1,800
Beans Bag                                                  1,250                                                      -                                                             1,250                     1,250
Fish, Meat and funds for unexpected change                                                      350                                                              350                                             350
Selling of banana and groundnuts                                                   250                                      250
Use of Funds                                           (400)                                    (400)
Funds needed                                             125                     3,300                        220                                          -  

Related Solutions

Exercise 11-12 Variance Analysis in a Hospital. John Fleming, chief administrator for Valley View Hospital, is...
Exercise 11-12 Variance Analysis in a Hospital. John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospital and have resulted in many complaints. Also, because of strict regulations on amount reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs.                 Mr. Fleming has asked you...
Banana Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents,...
Banana Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin. After considerable research, a winter products line has been developed. However, Banana’s president has decided to introduce only one of the new products for this coming winter. If the product...
Banana Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents,...
Banana Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin. After considerable research, a winter products line has been developed. However, Banana’s president has decided to introduce only one of the new products for this coming winter. If the product...
Is it better for a hospital to obtain cash for expansion through debt financing or equity...
Is it better for a hospital to obtain cash for expansion through debt financing or equity financing?
Is it better for a hospital to obtain cash for expansion through debt financing or equity...
Is it better for a hospital to obtain cash for expansion through debt financing or equity financing?
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in...
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for...
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in...
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for...
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in...
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for...
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in...
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for...
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in...
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT