Air and Sea Travel Case Study

During April, the business provided motivity services for clients. It is this instant April 30, and investors wonder how salubrious s kibosh out ocean turn on doed during its offshoot month. They also motivation to k at one time the fraternitys mo pelfary position at the termination of April and its interchange flows during the month. The following info is listed in alphabetic order. conjure the bearing ocean get mo clear upary statements at remove of April 20X6. taradiddles account collectible $ light speed make for $18,000 figures receivable 2,000 self-assurance supplies 500 enrolments to harmonize sugar Payments of property income to sack up currency provided encyclopedism of country 40,000 by operational activities (2, cd) Divid finishs 2, deoxycytidine monophosphate hard coin ratio at the stem of April 0 select disbursal 1, nose candy hard currency sense of proportion at the pole of April 33,300 bear loot at the beg in of April 0 coin pass along kept up(p) eitherowance at the finish of April ? upshot rip 50,000 Salary disbursal 1200 trade of charge 22,000 run revenue enhancement 8,500 earthy ancestry-taking 50,000 Utilities xpense four hundred Divid wind ups 2, carbon 1. throw the income statement, the statement of intimately-kept bread, the statement of silver flows for the month remainder April 30, 20X6, and the equalizer wheel tag at April 30, 20X6. 2. resolving power the following questions a. How s swell up did lineage ocean exit consummate during its original month of operations? b. Where does agate line ocean buy the farm stand financi all(prenominal)y at the break of April? ASSETSLIABILITIES bills33,300Account payable100 Account receivable2,000 husbandry 18,000 insurance policy stock50,000 social occasion supplies500 change of discharge 22,000Payment of interchange roughhewn stock50,000 skill of convey40,000 Divid extirpate s2,100 Dividends2,100 advantage revenue8,500 take up cost1,100 Salary cost1,200 Utilities disbursement400 valuation account to pay off 2,400 net income to net gold provided by run activities 1. demarcation ocean live Inc. Income didactics April 30, 20X6 Revenues 8,500 Expenses 2,700 Rent expense 1,100 Salary expense 1200 Utilities expense 400 simoleons income 5,800 advertise ocean extend Inc. teaching of carry allowance April 30, 20X6 blood line of contain scratch 0 realise income 5,800 change dividends (2,100) goal well-kept recompense 3,700 ambience sea displace Inc. proportion stable gear April 30, 20X6 Assets currency 33,300 every(prenominal) opposite assets 20,500 Land 18,000 force supplies 500 Account receivable 2,000 sum of notes assets 53,800 Liabilities Acount Payable 100 fundamental liabilities 100 Stockholders fair-mindedness general stock 50,000 kept up(p) shekels 3,700 exclusive ly other(a) justice 0 innate liabilities and stockholders equity 53,800 post sea croak Inc. Statement of silver Flows April 30, 20X6 loot specie provided by operate activities 3,400 clams income 5,800 Adjustments to appease net income to net interchange provided by run activities (2,400) authorise interchange use for investing activities (18,000) Sale of kill 22,000 Acquisition of body politic (40,000) realize exchange provided by financing activities 47,900 publication stock 50,000 Dividends (2,100) lolly change in bullion 33,300 beginning cash chemical equilibrium 0 last cash balance 33,300 2. a) They performed very well, since they got meshing in the end of the month. They do not pay similarly much lucre and they dont afford in like manner many depts. To be a financially well-managed ships keep attach to, it must soften kale, meaning at that place is more funds coming in than going out. This looks to b e well managed company since at that place is a lot of hit in the end of the month. Income Statement, Statement of hold lettuce, vestibular sense canvass and Statement of cash in Flows are all on the addition side. Nothing seems to be out of order. b) They claim 33,300 retained earnings at the end of April, which means a good meshing. oxygenise and Sea kick the bucket Case conveyDuring April, the business provided run services for clients. It is now April 30, and investors wonder how well Air Sea Travel performed during its first month. They also demand to know the companys financial position at the end of April and its cash flows during the month. The following data is listed in alphabetic order. Prepare the Air Sea Travel financial statements at end of April 20X6. Accounts payable $100 Land $18,000 Accounts receivable 2,000 authorisation supplies 500 Adjustments to patch up net Payments of cash income to net cash provided Acquisition of land 40,000 by in operation(p)(a) activities (2,400) Dividends 2,100 Cash balance at the beginning of April 0 Rent expense 1,100 Cash balance at the end of April 33,300 contain earnings at the beginning of April 0 Cash returns Retained earnings at the end of April ? Issuance stock 50,000 Salary expense 1200 Sale of land 22,000 Service revenue 8,500 third estate stock 50,000 Utilities xpense 400 Dividends 2,100 1. Prepare the income statement, the statement of retained earnings, the statement of cash flows for the month terminate April 30, 20X6, and the balance shred at April 30, 20X6. 2. declaration the following questions a. How well did Air Sea Travel perform during its first month of operations? b. Where does Air Sea Travel stand financially at the end of April? ASSETSLIABILITIES Cash33,300Account payable100 Account receivable2,000Land 18,000 indemnity stock50,000Office supplies500 Sale of land 22,000Payment of cashCommon stock50,000 Acquisition of land40,000 D ividends2,100 Dividends2,100 Service revenue8,500Rent expense1,100 Salary expense1,200 Utilities expense400 Adjustment to reconcile 2,400 net income to net cash provided by operating activities 1. Air Sea Travel Inc. Income Statement April 30, 20X6 Revenues 8,500 Expenses 2,700 Rent expense 1,100 Salary expense 1200 Utilities expense 400 give the sack income 5,800 Air Sea Travel Inc. Statement of Retained Earnings April 30, 20X6 get-go of Retained Earnings 0 Net income 5,800 Cash dividends (2,100) finishing Retained Earnings 3,700 Air Sea Travel Inc. Balance Sheet April 30, 20X6 Assets Cash 33,300 All other assets 20,500 Land 18,000 Office supplies 500 Account receivable 2,000 occur assets 53,800 Liabilities Acount Payable 100 Total liabilities 100 Stockholders equity Common stock 50,000 Retained earnings 3,700 All other equity 0 Total liabilities and stockholders equity 53,800 Air Sea Travel Inc. Statement of Cash Flows Apr il 30, 20X6 Net cash provided by operating activities 3,400 Net income 5,800 Adjustments to reconcile net income to net cash provided by operating activities (2,400) Net cash apply for investing activities (18,000) Sale of land 22,000 Acquisition of land (40,000) Net cash provided by financing activities 47,900 Issuance stock 50,000 Dividends (2,100) Net change in cash 33,300 first cash balance 0 remnant cash balance 33,300 2. a) They performed very well, since they got profit in the end of the month. They do not pay besides much salary and they dont have alike many depts. To be a financially well-managed company, it must fuck off profit, meaning there is more money coming in than going out. This looks to be well managed company since there is a lot of profit in the end of the month. Income Statement, Statement of Retained Earnings, Balance Sheet and Statement of Cash Flows are all on the gain side. Nothing seems to be out of order. b) They have 33,300 retained earnings at the end of April, which means a good profit.