Analysis of Business Activities
Strawberry Acres is experiencing some difficulty with understanding if the farm made a profit. They have asked you, a well known student, to help them analyze last year's performance from the annual totals of their income and expense accounts. They have also listed transactions regarding loans. Strawberry Acres principal product is pick-your-own and pre-picked strawberries, obviously. However, the farm also grows traditional products as well. The farm recently built a "market" where visitors can purchase fresh produce and other products. A fall festival is held in October with many "farm entertaining activities" a spring festival is also held, but to a much smaller scale.
You will create a table in EXCEL similar to the one on MOODLE but with an annual (not monthly) column. This is similar to what we have seen in class. Be sure to keep your signs (+ or -) correct in the cash flow (left side or column). Place the correct entry in the proper place for your three activities of the business. Add a fourth activity for family living should you come across living expenses. Use this spreadsheet to gain insight into the farm situation.
Other information you will need to complete this assignment: Beginning cash balance was $1,750 on January 1, 2016). Depreciation expense (both for tax and management purposes) was $27,800.
Make sure that the cash flow, net total, balances with the net total of the four activities.
From your analysis answer the following.
What was total net cash flow?
What was total net cash flow per activity: Operations/Production, Investing, Financing and Family Living?
Briefly discuss the outcomes from each activity, (for example, did the farm borrow more than was paid back and implications if any)
In your opinion, is the information provided sufficient and complete? What might be missing or in error? Does this make sense to you?
Did Strawberry Acres make a profit this year?
If the net of Investing is negative, what does this tell you about the future for Strawberry Acres? Or implications that exist for any business for that matter relative to this issue.
Attachment:- Assignment.rar