Question

Laura WIL SILU UL LS Uly gap Uy Ipurung luc cunicu and available capital in Excel. Exercise 2 Foundation The Sticky Needle runs a creative center that offers various courses such as: knitting, crochet, quilting, cross stitching and even textile paining and colouring, and textile crafts. One's a year The Sticky Needle organizes an exhibition with textile art and craft supplied by the course members. These exhibitions have acquired a certain regional status. Due to this, the foundation is financially supported by several companies and donations are received from private individuals. The treasurer of the foundation's committee has made a financial report for 2019. Cash flow statement (in euros Cash Outdows Rent of the building 18,500.00 Salary manager of the center 28,500.00 Fees paid to the instructors 12.000.00 Purchase of materials 5,550.00 Energy and water 8,250.00 Management expenses 11.450 Cleaning costs 5,800.00 Insurances 4.165. Interest 1,718.75 Redemption bank loan 7.500.0 Miscellaneous 2,500.75 Total Cash-out 195.934 40 Cash inclow Course foes 160.000. Subsidies council 9,750.00 Subsidies government 4.500.00 Intrance fees exhibitions 2.775. Sa Donations from private persons 450.00 Sponsor contributors 7,350.00 Miscellaneous 1.350 Total cash-in 86.175.50 TA -9.759.00 To finance all of this, a bank loan of 75,000 euros will be available from 1-1-2019 at an annual interest rate of 2,5%. The interest is paid per month at the beginning of the next month. This bank loan must be repaid within 10 years. The redemption is always carried out at the end of the year, on 31 December. The board of directors of the foundation gathers in a slight state of panic. The loss of € 9,759 is very worrying and an immediate increase in course fees is considered. A new member of the board, with a background in financial management, remarks that the overview is based on cash and cash equivalents and that, based on this, no conclusions can be drawn with respect to profit and losses of the foundation. The overview only shows that the cash and cash equivalents have reduced by € 9,759. It is therefore incorrect to call this a loss. Whether there is a positive or a negative operating result remains to be seen. Further examination shows that: • On December 31, 2018 a new knitting machine was purchased for € 4,000. The lifespan is set to eight years. The residual value after 8 years of service is estimated to be € 250 and a straight-line depreciation method is applied. • The rent for yo u 2 019.

These are all the information I have.

QUESTION A B C

Answer 1

Question A:
Balance sheet as on 01.01.2019
Liabilities	Amount($)	Assets	Amount($)
Bank Loan	75000	Stitching Machine	4000
		Inventory	155
		Cash & Cash equivalents	56500
		Prepaid Rent	9250
		Other assets	5095
	75000		75000
Here Balance amount is taken in current assets and Cash & Cash Equivalents arrived
Bank loan amount minus the Rent Paid as on 01.01.2019(75000-18500)

Question B:
Income statement:
Revenue:	Amount($)
Course fees received	55000	After deduction the advance amount of 5000
Subsidies council	13000	Per quarter 3250
Subsidies government	4500
Entrance fees exhibitions	2775
Donations from Private persons	450
Sponsors contribution	7350
Miscellaneous income	1350
	84425
Expenses:	Amount($)
Rent	9250	18500 is for 2 months
Manager's salary	28500
Fees paid to the instructors	12000
Consumption of Materials	5200	350 closing stock
Energy and water	8250
Management expenses	1450
cleaning costs	5800
Insurance	2250
Interest	1719
Miscellaneous	2501
Depreciation	468.75
	77389
Profit	7037

Question C: Balance sheet as on 31.03.2019
Liabilities	Amount($)	Assets	Amount($)
Bank loan	67500	StichingMachine	3531
Course fee advance received	5000	Inventory	350
Profit transferred to capital	7037	Prepaid insurance	1915
		Prepaid rent	9250
		Debtors- Subsidy councile	3250
		Other assets including cash	61240.25
	79536.5		79536.5