1 FINANCIAL DATA AND DECISION MAKING TEST STUDENT NAME: ………………………………… I.D: ………………………………………………….. Time Allowed: 60 Minutes Total Marks: 40 Three questions to be completed. Answer all questions in the space provided.2 Question 1 Prepare properly classified financial statements: (i) Statement of Financial Position (Balance Sheet) (ii) Statement of Financial Performance (Profit and Loss Statement) as at the end of the following transactions for the period (10 + 10 = 20 marks) Balance Sheet at Beginning Current Assets Liabilities Bank $ 1,000 Trade Creditors $ 6,000 Debtors $ 3,000 Stock $ 2,000 Proprietorship $10,000 Fixed Assets Plant & Equipment $13,000 Less Acc. Dep. $( 3,000) $16,000 $16,000 Transactions Sales - Cash $10,000 - Credit $10,000 Credit Purchases $15,000 Stock at End $ 3,000 Wages $ 2,000 Depreciation $ 1,000 Paid Creditors $18,000 Collections from Debtors $ 9,0003 Answer to Question 1 Workings Bank Debtors Bal. At beg. ……………. Bal. At beg. ……………. Add receipts ……………. Add credit sales ……………. Total ……………. Total ……………. Less payment ……………. Less Collections ……………. Bal. At end ……………. Bal. At end ……………. Trade Creditors Bal. At beg. ……………. Add Credit purchases ……………. Total ……………. Less Payments ……………. Bal. At end ……………. Statement of Financial Performance (Answer in space below)4 Statement of Financial Position (Balance Sheet) Answer in space below5 Question 2 Prepare a properly classified Cash Flow Statement from the following information (10 marks) Beginning Statement of Financial Position Bank 3,000 Trade Creditors 5,000 Debtors 10,000 Loan 2,000 Stock 4,000 Fixed Assets 20,000 Proprietorship 30,000 37,000 37,000 Statement of Financial Performance Sales - Cash 30,000 Credit 10,000 40,000 Cost of Goods Sold 30,000 Depreciation 2,000 Wages 3,000 Net Profit 5,000 End Statement of Financial Position Bank 11,000 Trade Creditors 6,000 Debtors 8,000 Loan 1,000 Stock 5,000 Proprietorship bal 30,000 Fixed Assets (WDV) 18,000 Profit 5,000 35,000 42,000 42,0006 Statement of Cash Flow (Answer in space provided)7 Question 3 Using you answer to Question 2, analyse the movements in cash including an evaluation of developments in the financial position of the firm to meet cash obligations in the future. (Answer in space below) (10 marks)