Question 1 Blue River Mountain Resort had the following cash transactions over the financial year ending 30 June 2022. O

[answerhappygod]

Question 1 Blue River Mountain Resort Had The Following Cash Transactions Over The Financial Year Ending 30 June 2022 O 1 (31.86 KiB) Viewed 50 times

Question 1 Blue River Mountain Resort had the following cash transactions over the financial year ending 30 June 2022. Opening cash balance, 1 July 2021 was $5,500. Transaction Amount Acquisition of building $675,000 Received loan funds $250,000 Payment to employees $52,800 Income Tax paid $4,250 Sold machinery $220,000 Drawings $6,000 Paid bank interest $1,529 Paid suppliers for inventory $109,075 Cash sales $305,350 a. Prepare a Cash Flow statement for Blue River Mountain Resort for the year ending 30 June 2022 using the information provided. [6 marks] b. Explain why sales made on credit terms are not included in the Cashflow Statement. Your answer should include an explanation of the difference between accrual and cash accounting (max 300 words). [5 marks] c. Explain whether this business could possibly have a profit in the Income Statement. Explain your answer by providing an example. (max 300 words). [4 marks] [Total for Question 1 = 15 marks]