Ayla Bruns 1754122 New Business Models Transactions- Oral Assignment

Audio Transcript Auto-generated

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  Hello, My name's Isler Bronze, and today I'll be explaining

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  my transactions.

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  The transactions I was given was Transaction five and seven.

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  To begin with is my balance sheet for transaction five.

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  So, in order to launch a new product or company

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  decided to invest in new bottling equipment which cost 450,000

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  euros paid in cash, therefore arm.

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  Since you'll be purchasing new machinery for 450,000 euros in

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  cash, you have to remove 450,000 in the cash label,

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  which is under assets.

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  Therefore, from 590,000 you remove 450,000 so then you will

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  have 140,000.

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  However, because you have new equipment, you'll be adding 450,000

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  euros onto the label off property equipment, which is under

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  assets. And the reason for this is because it's the

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  thing you are actually investing in.

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  Is is, um, the type of equipment and everything is

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  under assets because this is the money and the things

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  you own.

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  And since you paid in cash, which you own, and

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  since you're getting new property, it goes under your assets

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  and the total assets and total liabilities and equity remain

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  the same regardless of this transaction, because the the liabilities

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  and equity was not touched it all.

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  And technically, you are just repositioning the foreign, the 50,000.

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  Therefore, everything remains the same, which gives you the total

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  off three million, 159 euros.

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  Now I'm going to be moving on to my income

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  statement. And, um, the reason that I don't have income

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  statement is because since the new bottling equipment is a

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  new investment, this is not a count as a loss

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  for the income statement as the machinery is gained as

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  an asset.

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  Therefore, it should not affect the income statement and then

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  moving on to my cash flow statement for transaction five.

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  So, as you can see here, I put in the

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  outflow of 450,000 in investing activities.

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  Um, because you are investing in this new new equipment,

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  therefore is wides and in investing and the reason why

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  I added an outflow of 450,000.

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  It's because that's how much you invested in the boxing

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  equipment, and this also affects it net cash flow because

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  there's an outflow in the investing activities and as mentioned,

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  if you add or remove something from the activities and

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  the cash flow statement you have toe also include that

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  in the net cash flow.

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  Now I'm gonna be moving on to transaction.

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  Seven. Where supermarket Albert Heim just ordered 2000 boxes worth

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  40,000 euros for the price of 80,000 euros from your

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  lemon lemon.

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  A company paid 50,000 in cash and 50,000 and I

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  mean sorry, so 50% in cash of 50% on credit,

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  not 50,000 since 50 50% is paid by cash and

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  on credit.

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  This will affect your assets and 80,000 euros, which is

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  50% off.

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  80,000 will be added onto cash and then another 40,000

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  will go under accounts receivable.

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  And this is obvious because 50% is paid in cash

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  and 50% is paid on credit.

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  Because you have increased your assets by 80 thousands, the

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  total assets need to be increased by 80,000 as therefore

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  making it um, 3,000,239 euros.

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  Um, on the other hand, under equity, you need to

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  add another 80,000 onto your accumulated retained earnings as you

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  have made 80,000 euros.

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  Therefore, it should be 770,000 um, euros over there.

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  Um and also because you added more onto equity your

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  total equities to be added to 80,000 therefore making it

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  two million, 270,000 on dhe.

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  This also needs to be done for the total liabilities

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  and equity in order to make the rounds sheet balance

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  where an 80,000 will be added.

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  Therefore, making it 3 2,000,003 million 3,439,000 and therefore making

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  the balance sheet balanced.

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  Now, I'm gonna be moving on to my income statement

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  for the transaction.

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  Seven. So this transaction also affects the profit loss account.

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  But Onley will be affected under sales, and the reason

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  for this is because they're no expenses being spent in

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  this transaction.

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  That's the only thing that will be affected will be

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  the sales.

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  So since you started off with adventurer E off 40,000

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  I mean worth 40,000.

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  Um, you made a profit of 40,000 because all behind

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  purchaser, 2000 boxes for 80,000 set of 40,000 therefore, is

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  why the cost of goods sold is 80,000.

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  Um, however, since you sold adventure for 40,000 and you

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  gain a profit of 40,000 is is why the net

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  profit after taxes is 40,000 not 80,000 because you made

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  a profit of 40,000.

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  And finally, I'm going to be moving on to my

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  cash full statement for transaction seven.

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  Since AL behind will be purchasing 80,000 euros.

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  Um, for 2000 boxes, this acts as a source of

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  revenue, which is why the cash flow is needed.

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  Therefore, um, this would go under operating activities because this

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  is the money you made whilst operating your business.

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  Um, where the inflow will be 80,000 years.

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  Because that's how much you made from selling your your

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  boxes to all behind.

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  And this also affected net cash flow because you received

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  an extra 80,000 euros and as mentioned, if you add

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  or decrease anything from the activities on a cash flow

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  statement, you need to be applying it the exact same

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  way for net cash flow.

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  And yes, they This is my recording for my transactions

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  and thank you