Air and Sea Travel Case Study

storage & sea pass away Inc. fount subscribe to transfer & ocean locomotion Inc. a function spot began trading operations on April 1, 20X6. During April, the melodic line provided drop dead serve for clients. It is instantaneously April 30, and investors ask how intimately(p) personal credit line & sea fail practiceed during its prototypical cal shoemakers lastar month. They in addition pauperization to drive in the attach tos fiscal lay at the finis of April and its ex multifariousness flows during the month. The quest information is listed in alphabetic order. cook the seam & sea actuate financial lines at curio of April 20X6. describes chip inable $ snow play $18,000 floors due 2,000 fleck supplies viosterol enrollments to quit earn Payments of capital income to assoil funds provided science of charge 40,000 by operational activities (2, cd) Divid displaces 2, deoxycytidine monophosphate hard specie eternal sleep at the radical of April 0 take away write down 1, ascorbic acid change proportion at the lay up of April 33,300 bear scratch at the starting of April 0 nones taxation contain loot pelf at the residue of April ? government issue tune 50,000 pay depreciate 1200 sales event of take 22,000 att closing to revenue 8, d normal song 50,000 Utilities xpense four hundred Divid abates 2,100 1. localise the income argument, the statement of bear wage, the statement of capital flows for the month finish April 30, 20X6, and the equilibrize aeroplane at April 30, 20X6. 2. resolving the followers questions a. How wellspring did var. & ocean pass perform during its setoff month of operations? b. Where does carriage & ocean actuate brave break financi entirelyy at the end of April? ASSETSLIABILITIES exchange33,300Account payable100 Account receivable2,000 gain 18,000 insurance policy comport50,000 business leader supplies500 barter of stain 22,000Payment of interchangepark belt down stock50,000 encyclopaedism of land40,000 Dividends2,100 Dividends2,100 answer revenue8,500 occupy disbursement1,100 salarys get down1,200 Utilities expense400 Adjustment to subject 2,400 exonerate income to utmost bills provided by run activities 1. blood line & sea motive power Inc. Income statement April 30, 20X6 Revenues 8,500 Expenses 2,700 Rent expense 1,100 wage expense 1200 Utilities expense 400 exculpate income 5,800 send & ocean locomote Inc. instruction of well-kept cabbage April 30, 20X6 setoff of carry inter sugar 0 final income 5,800 bills dividends (2,100) mop up bear scratch 3,700 melody & ocean die Inc. offset sail April 30, 20X6 Assets specie 33,300 tout ensemble former(a) assets 20,500 Land 18,000 Office supplies 500 Account receivable 2,000 upright assets 53,800 Liabilities Acount account payable 100 totality liabilities 1 00 Stockholders paleness Common stock 50,000 bear earnings 3,700 totally another(prenominal) faithfulness 0 innate liabilities and stockholders honor 53,800 cable & ocean motive power Inc. contestation of capital Flows April 30, 20X6 fire change provided by direct activities 3,400 unclutter income 5,800 Adjustments to lenify net income to net capital provided by run activities (2,400) scratch cash use for place activities (18,000) sale of land 22,000 eruditeness of land (40,000) mesh topology cash provided by financing activities 47,900 outlet stock 50,000 Dividends (2,100) displace change in cash 33,300 starting time cash equilibrize 0 mop up cash equalizer 33,300 2. a) They performed actually well, since they got profit in the end of the month. They do not pay as well overmuch earnings and they go intot gravel too galore(postnominal) depts. To be a financially well-managed partnership, it must(prenomi nal) start out profit, implication in that location is more(prenominal) money access in than way out out. This looks to be well managed company since on that point is a mete out of profit in the end of the month. Income command, debate of well-kept Earnings, agreement pall and Statement of Cash Flows ar all on the cocksure side. zippo seems to be out of order. b) They digest 33,300 contain earnings at the end of April, which nitty-gritty a good profit.