Question 1

Maria acquired Central Delivery Services in 2018 providing a courier service for non-refrigerated goods within the City of Melbourne.

Due to (Covid-19) the business has expanded rapidly and needs to obtain finance for an additional delivery van to expand the business. Maria’s accountant is ill and cannot assist for another month. As Maria has no experience in accounting she watched “how to prepare financial statements” YouTube videos and then prepared the financial statements below:

a)-Describe the purpose of each of the financial statements above (100 words).

b)-List any errors Maria has made in these financial statements and then briefly explain to Maria the

correct treatment (300 words).

Question 2

The following shows the Consolidated Statement of Cash Flows for Harvey Norman from their 30 June 2019 Annual Report p.65 (https://www.annualreports.com/HostedData/AnnualReports/PDF/ASX_HVN_2019.pdf )

Review each section of the Statement of Cash flows below and the overall cash position of the company to justify why (or why you would not) consider investing in this company (150 words).