answer

watching

views

orchidwasp396Lv1

28 Sep 2019

SUBJECT BUSINESS ACCOUNTING
you are kindly requested to apply basic accounting logic to start and develop your own business idea. For this reason, you will have to cover the following:
1.Unique business description
2.What are your main objectives?
3.What is the proposed name of the business/idea?
4.What is the form of your business organization?
5.Why did you choose the business form in part 4?
6.How much cash you the business need? And why?
7.If you do not have the sufficient cash, where will you raise the needed funds to start your business?
8.Name 10 factors you would be considering for the start of your business (challenges, needs, regulatory constraints, market study, etc.)
9.Step-by-Step, mention the major activities (actual transactions) you have undertaken during one month/one year of starting the business
10.List down what information you will be requiring at the end of the month? And what is the purpose for getting that information
11.Present a basic income statement and balance sheet at the end of the month (or year).

answer

watching

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Nestor RutherfordLv2

28 Sep 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

Part A, 7 marks

You are working as an accountant in alocal accounting firm. You have been approached by Oliver andSydney, the owner of Sugariffic, a start-up wholesaler. They havechosen Xero as their cloud based accounting system and haveemployed you to set up their company in Xero and enter the firstmonthâs transactions. You are required to enter a range oftransactions and generate the reports requested by your client toassist with the start up of their business. All information hasbeen supplied by the business owner for you to input. The set upand transactional data will be provided in Interact Resources.

Taskrequirements:

Process your clients' transactions forAugust 2018. Generate and submit the following reports to yourclient for the month of August 2018;

Profit & Loss

Balance Sheet

Trial Balance

Aged Payables (detail)

Aged Receivables (detail)

Inventory Item Summary.

Part B, 3 marks

Whilst your client has requestedthe 6 reports detailed above, Xero has a range of other reportsavailable. Review the other reports which can be generated fromXero and prepare an executive summary for your client providingadvice on 2 other reports they could generate from Xero tofacilitate their decision making. In your summary, consider thefollowing:

Which other, specific reports from Xero should your clientgenerate and use for decision making?

What decisions would your client use each of these reportsfor?

To support your discussion, runthe reports you are recommending for the month of August andinclude them with your report.

The marks assigned for both parts ofthis assessment include correctness of information and presentationof your reports. Your report needs to look professional, as thoughit could be provided to your client.

kindly refer this link for moreinformation

ceriseimpala977

The purpose of this case study is to help you integrate the managerial accounting concepts that were covered in class and apply them to a real-world business setting. Business Description You will assume the role of an entrepreneur starting a small company. Your company will produce and sell gourmet cupcakes through a storefront in a location of your choice. Your business is scheduled to launch on January 1, 2018. Cost information: 1 Cost of goods sold: a. Ingredients are .30 per cupcake b. Boxes and Cupcake Cups are .05 per cupcake 2 Equipment that will be required to be acquired at the start of business includes ovens, racks, display case, counter, cash register, and other baking equipment and will cost $140,000. The equipment is expected to last 10 years without salvage value. Straight-line method of depreciation should be used. 3 On average one person can make, bake, and decorate 24 cupcakes per hour. Bakers are paid $15.00 per hour. 4 Sales personnel are required for 56 hours per week and are paid $10.00 per hour. 5 Monthly rent, which includes utilities, is $1,500. 6 Business insurance is purchased at a cost of $1,000 per year. 7 Advertising costs are expected to be $6,000 per year. â Requirements: Using separate tabs in a spreadsheet, provide your answers for the following. 1 Name your company (5 points) 2 What and how much are the variable costs? Present each item in cost per cupcake basis (5 points). 3 What and how much are the fixed costs? Present each item in total cost per year (5 points). 4 Write out the annual cost formula in Y = a + bX format (5 points). 5 Develop a price using a target price (what do you think a customer will pay for one of your cupcakes? What are other companies charging for gourmet cupcakes?) Provide support for your target price (10 points). 6 Develop a price using cost-based pricing assuming that you expect to sell 24,000 cupcakes the first year and would like to have a 20% profit (10 points). 7 Using the price you calculated using cost based pricing in #6, calculate contribution margin per cupcake and contribution margin ratio (5 points). 8 Based on the price you calculated in #6, calculate how many cupcakes need to be sold in order to break-even. Calculate how much sales in dollars are needed to break-even (10 points). 9 Prepare a cost/volume/profit chart (15 points). 10 Prepare the companyâs forecasted functional income statement for the year ended on 12/31/2018 based on the sale of 36,000 cupcakes (10 points). 11 Based on the sale of 36,000 cupcakes during the first year of business, calculate the margin of safety and the operating leverage for the business. What do these figures tell you about how risky the business is? (15 points) 12 If sales could increase by 10% (to 39,600 cupcakes), by how much in dollars would net operating income increase? By what percentage would net operating income increase? Use the formula for leverage to calculate (5 points). 13 Prepare a contribution format income statement assuming sales of 39,600 cupcakes (10 points). 14 Calculate how many cupcakes need to be sold in order to make a $50,000 target profit for the year (5 points). 15 Calculate the total amount of cash that will be needed at the start of the business in order to buy all necessary equipment and machines and cover the first three months of fixed expenses. This amount will be your initial investment in the business. Note that the equipment will be paid in full on the first day of business. Other expenses will be paid on a monthly basis (10 points). 16 Prepare a cash budget for the companyâs first year of operations based on the sales calculated in item 14. Assume all sales are cash sales and that all costs and expenses are paid in cash. You decide to maintain a minimum cash balance of $5,000 (15 points). 17 After your thorough analyses of costs, sales, and profitability of your cupcake business throughout this project, what is your overall impression of the future potential of the business? Provide a short assessment (10 points).

coffeesheep473

Cost information:

1 Cost of goods sold: a. Ingredients are .30 per cupcake b. Boxes and Cupcake Cups are .05 per cupcake

2 Equipment that will be required to be acquired at the start of business includes ovens, racks, display case, counter, cash register, and other baking equipment andwill cost $140,000. The equipment is expected to last 10 years without salvage value. Straight-line method of depreciation should be used.

3 On average one person can make, bake, and decorate 24 cupcakes per hour. Bakers are paid $15.00 per hour.

4 Sales personnel are required for 56 hours per week and are paid $10.00 per hour.

5 Monthly rent, which includes utilities, is $1,500.

6 Business insurance is purchased at a cost of $1,000 per year.

7 Advertising costs are expected to be $6,000 per year.

Requirements: Using separate tabs in a spreadsheet, provide your answers for the following.

1 Name your company (5 points)

2 What and how much are the variable costs? Present each item in cost per cupcake basis (5 points).

3 What and how much are the fixed costs? Present each item in total cost per year (5 points).

4 Write out the annual cost formula in Y = a + bX format (5 points).

5 Develop a price using a target price (what do you think a customer will pay for one of your cupcakes? What are other companies charging for gourmet cupcakes?)Provide support for your target price(10 points).

6 Develop a price using cost-based pricing assuming that you expect to sell 24,000 cupcakes the first yearand would like to have a 20% profit (10 points).

7 Using the price you calculated using cost based pricing in #6, calculate contribution margin per cupcake and contribution margin ratio(5 points).

8 Based on the price you calculated in #6, calculate how many cupcakes need to be sold in order to break-even. Calculate how much sales in dollars are needed to break-even (10 points). 9 Prepare a cost/volume/profit chart (15 points).

10 Prepare the companyâs forecasted functional income statement for the year ended on 12/31/2018 based on the sale of 36,000 cupcakes (10 points).

11 Based on the sale of 36,000 cupcakes during the first year of business, calculate the margin of safety and the operating leverage for the business. What do these figures tell you about how risky the business is? (15 points)

12 If sales could increase by 10% (to 39,600 cupcakes), by how much in dollars would net operating income increase? By what percentage would net operating income increase? Use the formula for leverage to calculate (5 points).

13 Prepare a contribution format income statement assuming sales of 39,600 cupcakes (10 points).

14 Calculate how many cupcakes need to be sold in order to make a $50,000 target profit for the year (5 points).

15 Calculate the total amount of cash that will be needed at the start of the business in order to buy all necessary equipment and machines and cover the first three months of fixed expenses. This amount will be your initial investment in the business. Note that the equipment will be paid in full on the first day of business. Other expenses will be paid on a monthly basis (10 points).

16 Prepare a cash budget for the companyâs first year of operations based on the sales calculated in item 14. Assume all sales are cash sales and that all costs and expenses are paid in cash. You decide to maintain a minimum cash balance of $5,000 (15 points).

17 After your thorough analyses of costs, sales, and profitability of your cupcake business throughout this project, what is your overall impression of the future potential of the business? Provide a short assessment (10 points).

grayplatypus142

Weekly leaderboard

Home

Homework Help 3,900,000

Accounting 580,000