Air flow , Marine Travel Incorporation. Case study Surroundings , Sea Travel Inc. a travel agency began functions on April 1, 20X6.
During The spring, the business offered travel solutions for clientele. It is now 04 30, and investors ponder how well Air , Sea Travel around performed during its initially month. Additionally, they want to know the company’s financial position at the conclusion of Apr and its cash flows throughout the month. The next data shows up in logogrammatic order. Put together the Air , Sea Travel financial assertions at end of 04 20X6. Accounts payable |$100 |Land |$18, 000 | |Accounts receivable |2, 000 |Office products |500 | |Adjustments to reconcile net | |Payments of cash: | | | income to net funds provided | | Acquisition of land |40, 000 | | by simply operating actions |(2, 400) | Dividends |2, 100 | |Cash balance at the beginning of April |0 |Rent expenditure |1, 95 | |Cash balance by the end of 04 |33, 300 |Retained income at the beginning of The spring | | | | | |0 | |Cash receipts: | |Retained profits at the end of April |? | | Issuance inventory |50, 000 |Salary expenditure | 1200 | | Sale of terrain |22, 1000 |Service income |8, five-hundred | |Common stock |50, 000 |Utilities xpense |400 | |Dividends |2, 75 | | | 1 ) Prepare the income statement, the affirmation of stored earnings, the statement of cash flows for the month ended 04 30, 20X6, and the balance sheet at The spring 30, 20X6. 2 . Response the following concerns: a. How well did Air , Sea Travel and leisure perform during its initially month of operations? w. Where really does Air , Sea Travel around stand fiscally at the end of April? ASSETSLIABILITIES Cash33, 300Account payable100 Accounts receivable2, 000Land 18, 500 Insurance stock50, 000Office supplies500 Sale of land 22, 000Payment of cash
Common stock50, 000 Acquisition of land40, 000 Dividends2, 100 Dividends2, 100 Service revenue8, 500Rent expense1, 75 Salary expense1, 200 Ammenities expense400 Realignment to get back together 2, four hundred net income to net cash provided by functioning activities 1 . |Air , Sea Travel around Inc. | |Income Affirmation | |April 30, 20X6 | |Revenues |8, five-hundred | |Expenses |2, seven hundred | |Rent expense you, 100 | |Salary expense |1200 | |Utilities price |400 | |Net income |5, 800 | |Air , Ocean Travel Incorporation. | |Statement of Retained Earnings | |April 35, 20X6 | | | | |Beginning of Maintained Earnings |0 | |Net income |5, 800 | |Cash payouts |(2, 100) | |Ending Retained Earnings |3, seven-hundred | |Air , Marine Travel Inc. |Balance Piece | |April 30, 20X6 | | | | |Assets | | |Cash |33, three hundred | |All other assets |20, 500 | |Land |18, 1000 | |Office supplies |500 | |Account receivable |2, 000 | |Total resources |53, 800 | |Liabilities | | |Acount Payable |100 | |Total financial obligations |100 | |Stockholder’s fairness | | |Common share |50, 000 | |Retained earnings |3, 700 | |All different equity |0 | |Total liabilities and stockholder’s fairness |53, 800 | |Air , Marine Travel Incorporation. |Statement of money Flows | |April 35, 20X6 | |Net cash provided by operating activities | |3, 500 | |Net income |5, 800 | | |Adjustments to get back together net income to net cash provided by functioning activities |(2, 400) | | |Net cash used for investing activities | |(18, 000) | | Sale for land |22, 000 | | |Acquisition of land |(40, 000) | | |Net funds provided by funding activities | |47, 900 | |Issuance stock |50, 000 | | |Dividends |(2, 100) | | |Net change in cash | | 33, 300 | |Beginning money balance | |0 | |Ending cash balance | | thirty-three, 300 | 2 . a) They performed very well, given that they got income in the end from the month. They just do not pay too much salary and they don’t have lots of depts. To become financially well-managed company, it must generate profit, meaning there exists more money arriving than heading out. This looks to become well maintained company since there is a lot of profit in the long run of the month. Income Affirmation, Statement of Retained Revenue, Balance Sheet and Statement of Cash Flows are typical on the as well as side. Nothing seems to be out of order. b) They may have 33, three hundred retained profits at the end of April, meaning a good income.
