Southern Cross University - ACC00724 Case Study Analysis: Accounting

This case study analyzes the financial performance and position of Ken Kennett Building Services and CC Accounting. The assignment involves preparing an income statement and a balance sheet for Ken Kennett, based on provided financial data, to assess his ability to meet payments to suppliers. The analysis also includes the computation of financial statements for CC Accounting, interpreting net profit, total assets, liabilities, and capital balance, alongside cash flow analysis from operating expenses and cash withdrawals. The conclusion emphasizes the importance of financial statements in making informed business decisions, such as whether to trade with Ken Kennett based on his financial health. The student's solution provides detailed calculations and interpretations of financial data, supported by relevant references.

Running head: ACCOUNTING FOR MANAGERS
SOUTHERN CROSS UNIVERSITY
Student Name: MUDDASANI RAHUL
Student ID No.: 23201284
Unit Name: ACCOUNTING FOR MANAGERS
Unit Code: ACC00724
Tutor’s name: Benjamin
Assignment No.:
Assignment Title: Case Study Analysis
Due date: 15-08-2019
Date submitted: 15-08-2019

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Declaration:
I have read and understand the Rules Relating to Awards (Rule 3 Section 18 – Academic
Misconduct Including Plagiarism) as contained in the SCU Policy Library. I understand
the penalties that apply for plagiarism and agree to be bound by these rules. The work I am
submitting electronically is entirely my own work.
Signed:
(please type
your name)
Date:

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Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
In Response to Question 1......................................................................................................3
In Response to Question 2......................................................................................................5
Conclusion..................................................................................................................................7

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Introduction:
The assignment deals with the preparation of the income statement and balance sheet
of the both the company which is Ken Kennett building services and CC Accounting.
Discussion:
In Response to Question 1
A.

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B.
From the evaluation of the income statement it is clear that it will not be a good
decision to trade with Ken regarding the suppliers of the building materials. The reason
behind that the individual will face net loss if trading is conducted with the Ken Kennett
building Services. The operating expenses is negative which is another reason behind
rejecting the project related to the Ken Kennett building Services (Kaplan and Atkinson
2015).

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In Response to Question 2
A.

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 From the computation of the financial statement of the company it can be interpreted
that by considering the income and the expenses, the net profit of the company is
4815.
 The total asset at the end of the year is 21195.
 The total liabilities at the end of the year is 21195.
 The total capital balance of Clive at the end of the year is 8115.
 The net cash inflow from the operating expenses in the business of Clive is 18000 and
the net cash outflow of the firm is 13185.
B.

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The cash which is withdrawn by Clive is 3000 which will definitely reduce the
income of the business (Libby 2017).

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Conclusion
From the above discussion it can be concluded that the project of Ken Kennett
building services must be rejected due to the negative flow of income.

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References
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Libby, R., 2017. Accounting and human information processing. In The Routledge
Companion to Behavioural Accounting Research (pp. 42-54). Routledge.