Colorado & Utah Canyons Tour Company Please add journal entries for all transactions.
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Colorado & Utah Canyons Tour CompanyColorado & Utah Canyons Tour Company
Asmaa Saleh
ACT 580- Capstone Accounting
Colorado State University-Global Campus
Dr. Curtis Crocker
6/16/2019
Colorado and Utah Canyons Touring Enterprise
Income Statement
(USD $)
Revenue from tours | 165,600.0 | |||||
Revenue sales | 29,200.0 | |||||
Returning, Refunding& Discount | ||||||
Total Net Revenue | 194,800.0 | | | | ||
| | | | | ||
Cost for the Good Sold | 77,900.0 | | | | ||
Gross Profits | 116,900.0 | | | | ||
| | | | | ||
Expense | | | | | ||
Advertise & Promoting | 3,200.0 | | | | ||
Setting up company | 2,000.0 | | | | ||
Insurance | 9,000.0 | | | | ||
Retail | 14,700.0 | | | | ||
Rent | 18,000.0 | | | | ||
Salaries, Benefits & Wages | 88,000.0 | | | | ||
Travel | 8,000.0 | | | | ||
Total Expenses | 142,900 | | | | ||
Earning Before Interests & Tax | (26,000.0) | | | | ||
| | | | | ||
Interest Expenses | 10,000.0 | | | | ||
Earning Before Tax | (36,000.0) | | | | ||
| | | | | ||
Income Tax | - | | | | ||
Net Earning | (36,000.0) | | | | ||
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Owner Equity Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Begin capital balances | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
+ Income from the period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Loss from the period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
+ Owner aids in the period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
- Owner drawings in the period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
= End capital balances | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
194,800 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
-36,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
=458,800 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | |
Cashflow Statement Colorado and Utah Canyons Touring Enterprise
Operation activity | |||||||
Cash from clients | 194,800 | ||||||
Cash payment to suppliers | -75000 | ||||||
Compensating employees | -36000 | ||||||
Other operation expense incurred | -32,700 | ||||||
Net income from operation | 51,100 | ||||||
Investment activity | |||||||
Purchasing | 50,000 | ||||||
Net income from investment | 50,000 | ||||||
Financing | |||||||
Common shares dividend | |||||||
Paying of long period debt | 9,000 | ||||||
Net income from financing | |||||||
Beginning balances for cash | 300,000 | ||||||
Ending balances for cash | |||||||
For any business to succeed there are financial statements that can be used to monitor its performance to ensure it succeeds. The financial reports that are used include the proceeds and the loss account. For anticipated profits and losses statements it is financial documentation which replicates the sum of the profit or the losses that one would getting from his business in order to generating in the future times. That is a very vital text which required by owner of the business and his cost accountant must put calm. That is useful as tracing tools for the empirically decisive whether the professional is probable to making proceeds and to being fruitful or to generating loss which ultimately flop.
The predictable profits and losses statements usually lists the incomes after the deals or facilities that are delivered, the charge for the belongings or the facilities providing, functioning expenditures including the wage, renting, advertise and the net revenue or losses.
For other type of economic report, the organization is the predictable cash-flows. A predictable cash-flow is usually very vital to greatest of the creditors since it delivers a suggestion whether the enterprise determination having enough money to paying the suppliers, vendor besides the additional creditor timely. For the info it purposes as the development tools for the owner of the business. If one cash-flows estimating the shows which they drive infrequently not having enough cash for paying their expenses, they can position in improvement for the additional foundations of the funds in order to getting them done the cash-flows crises.
Uncertainty one is making cash-flows budgeting worksheets for the prevailing commerce, they could base their estimate for cash bases besides the practices on the past info. When one has a start-up for businesses, then they would dishonorable their estimations on the money source besides the usages on incomes then the expenditures that are recorded in projection of profits and losses statement. Consequently, I commend one should analyses the predictable profits and losses statements sections; completing the predictable profits and losses statements beforehand carrying out the cash-flows budgeting worksheets which will be effective for the business.
In any given organization if there is lack of proper planning then it might affect the organization greatly whereby what might have been budgeted for could be different from what is expected. Explaining the variances that occur in the financial is very vital for the achievement of the corporate. Alterations remain usually the modification among the planned quantities and the real revenue or the expenditures that an organization might incur. Managers usually using modification intelligences for making modifications in fiscal predictions and monitoring of the presentation of the business or the business. Modification clarifications might swift the management to putting a strong monetary control measures in habitation or reallocating the incomes.
According to income statement of Colorado and Utah Canyons Touring Enterprise there are some we need got losses which the company is incurring which affects its performance. Lebas & Euske (2002) offering decent description for presentation as responsibility nowadays whatever leads on measuring the worth consequences for future. Instead of a firm gauging whatever, businesses must ration persons belongings which unswervingly relates to the firming policy (Kaplan and Norton,2001).
When it comes to the sales made by the company the revenue totals to $194,800. This shows us that there is still something that the organization must improve on in order to ensure that they attain the budgeted level. This might have been affected by the sales efforts or advertisement that took place or some regions which could have improved the sales was unreachable.
In reference to the purchases we can see that there was effective planning and that is why they were able to purchase what was required by the customers. In the case of gross profit, we can see that the organization had a gross profit of $116,900 this is so because of the difference between the cost of goods and the stock sold.
In advertising though it is vital for sales efforts it shows that they used a total of $3,200 for advertising exercise. We have got other expenses which were incurred by the organization which negatively affected them. The main reason for a loss was because of the higher expenses which can in a way indicate that the revenue which was obtained was very low.
Finance Position
The cash-flows after working doings amounting to 51,100. The cash-flows after capitalizing actions resulting in the cash out flow for 50,000. For the case of liabilities, we had a total of $58,200. When it comes to the financing activities, we look at the loan which was acquired to buy the common stock and balance which remained for running of the company.
For the company it has got a total of $ 381,500 being tied in the current assets. Some of the fixed assets which the company has at its disposal are snowmobiles. 58,200. The Company has also gone forward to invest in the common stock using the equity which was the loan that was obtained from the bank.
In conclusion for this enterprise to be successful then they should pull up their socks. Less has been done and much has been left out and if the same trend continues then the owner should be assured of getting out of the market as soon as possible. I recommend this report to the owners as it will be of great help to the performance of the business.
Reference
Kaplan, Norton, Robert, S. and DavidP. (2001). Strategies-Focusing Organizational: Business College Havard Press.
Lebas, Euske, Michel and Ken. (2002). Conceptualizing and operationalization delineation of performances of the Business Measurement Performances; Theories and Practices.
Mark E Haskins, 29 July 2015. Colorado & Utah Canyons Tour Company.