session 3 case studies and solutions nursery management understanding and managing finance
TRANSCRIPT
![Page 1: Session 3 Case studies and Solutions Nursery Management Understanding and Managing Finance](https://reader036.vdocuments.mx/reader036/viewer/2022083006/56649f305503460f94c4a75f/html5/thumbnails/1.jpg)
Session 3Case studies and Solutions
Nursery ManagementUnderstanding and Managing Finance
![Page 2: Session 3 Case studies and Solutions Nursery Management Understanding and Managing Finance](https://reader036.vdocuments.mx/reader036/viewer/2022083006/56649f305503460f94c4a75f/html5/thumbnails/2.jpg)
McLaney and Atrill Exercise 2.1 and 2.1 p 54
Wrapping Paper Accounts (End of Day 3)
Cash Flow
Op. Bal. £63
Sale £32
£95
Cash paid -£46
C. Bal. £49
Profit and Loss
Sales £32
Cost of goods -£23
Profit . £9
Balance Sheet
Cash £49
Stock £28
Total Wealth £77
NB this is just the asset side of the Balance Sheet
NB this is just the asset side of the Balance Sheet
![Page 3: Session 3 Case studies and Solutions Nursery Management Understanding and Managing Finance](https://reader036.vdocuments.mx/reader036/viewer/2022083006/56649f305503460f94c4a75f/html5/thumbnails/3.jpg)
McLaney and Atrill Exercise 2.1 and 2.1 p 54
On day 4, Paul purchases stock for £53 in cash. During the day he sells stock that cost £33 for £47.
Construct a cash flow statement, profit and loss account and a balance sheet. for the fourth day.
![Page 4: Session 3 Case studies and Solutions Nursery Management Understanding and Managing Finance](https://reader036.vdocuments.mx/reader036/viewer/2022083006/56649f305503460f94c4a75f/html5/thumbnails/4.jpg)
McLaney and Atrill Exercise 2.1 and 2.1 p 54
Wrapping Paper day 3
Cash Flow
Op. Bal. £49
Sale £47
£96
Cash paid -£53
C. Bal. £43
Profit and Loss
Sales £47
Cost of goods -£33
Profit . £14
Balance Sheet
Cash £43
Stock £48
Total Wealth £91
Can you now account for the ‘Total Wealth ‘figure?
Can you now account for the ‘Total Wealth ‘figure?
![Page 5: Session 3 Case studies and Solutions Nursery Management Understanding and Managing Finance](https://reader036.vdocuments.mx/reader036/viewer/2022083006/56649f305503460f94c4a75f/html5/thumbnails/5.jpg)
McLaney and Atrill Exercise 2.1 and 2.1 p 54 - Solution
Wrapping Paper - Total Wealth
Cash on Day 1 £40
Profit Day 1 £15
Profit Day 2 £13
Profit Day 3 £9
Profit Day 4 £14
Total £91
Balance Sheet
Cash £43
Stock £48
Total Wealth £91
Can you now create the right hand side to the Balance sheet?
Can you now create the right hand side to the Balance sheet?
![Page 6: Session 3 Case studies and Solutions Nursery Management Understanding and Managing Finance](https://reader036.vdocuments.mx/reader036/viewer/2022083006/56649f305503460f94c4a75f/html5/thumbnails/6.jpg)
McLaney and Atrill Exercise 2.1 and 2.1 p 54- Solution
Wrapping Paper Balance Sheet
CLAIMS
Owner’s Capital £40
Retained Profits £51
Total £91
ASSETS
Cash £43
Stock £48
Total £91