The Whittlesea Compass attributes explanations can be found HERE
TWC - Accounting 101 - Wheresthesea
The cache is not at the posted coordinates. To obtain the coordinates, solve the puzzle below.
As a counter attack to all of those specialised IT puzzle caches, here is an Accounting based puzzle where you have to answer some simple accounting questions which cachers that have some basic bookkeeping knowledge should find dead easy. The cache is located near a town whose name doesn’t make much sense considering where .
Business plan and background
During the year you set up a GPS importing and retailing business to provide Geocachers with affordable GPS units - mainly Garmins and the superseded Magellan eXplorists, but if it goes well and you find that there is a strong demand for cheaper units, you will look into importing, car navigation units, tablets specifically set up with geocaching programs, and possibly wrist watch navigation units.
You call your business “Wheresthesea”
So much for the business plan!
Business transactions
During your first year of operation, the following transactions occurred:
- Received $10,000 in cash by issuing equity loans to some members of your supportive family. They secretly don’t expect to ever see their money again so there are no conditions on the repayment of the equity loans, nor will there be any dividends issued.
- Arranged and received a loan of $25,000 from the bank. One of your mates works at the bank and managed to get the loan for you with no interest payable in the first year as long as $5,000 is paid before the end of the year.
You make that payment to comply with the agreement. (note: after the first year the interest rate will be 3.25% per annum).
The balance of the bank loan is not due or repayable until 5 years after the end of this year.
- You operate from your home garage, so there is no rent or other property related outgoings.
- Bought $15,000 of stock on credit which is not payable until the first quarter of the new financial year.
- Paid $7,000 in cash for furniture and a PC so that you can check that the GPSr's communicate with the PC and that the base map is ok. Your accounting policy says that you don’t depreciate assets in the year of purchase.
- Paid $5,000 for a lavish launch of the business at the Carlton Crest Hotel. Lots of cachers, bushwalkers and 4WDers attended with many stating that they would definitely be buying from you while they were grabbing their 4th smoked salmon canapé and gulping the Pol Roger champagne like it was water!
- Sold $10,000 worth of stock for $36,000 and were still owed $18,000 of the $36,000 sales at year end.
The mark-up looks high, but you are still providing a unit that costs way less than the price of the units currently sold in Australia.
- Paid yourself a $15,000 salary
- Also paid $2,000 in freight and duties, which you incorrectly deal with in the accounts, but no one is going to put you in jail because of the error.
- Interest earned on the bank balance was $2,000 for the year.
Your task!
At the end of your first year of operation, you are keen to see how profitable your business is. You know you have a solid bank balance at the end of the year from the balance shown on your bank statement and you are thinking of giving yourself a bonus because things are looking good. So you set out to prepare a profit & loss statement and a balance sheet (both excluding tax) to confirm your intuitive feelings.
Once you have prepared a P&L and B/S you look at the results which appear favourable, but you are not sure how the long term commitments will affect the business. With this uncertainty in mind you wisely decide to postpone your bonus as you also suddenly realise that you may have a tax liability as well (the ATO knows all!), even though as mentioned above these accounts have been prepared exclusive of any tax calculations.
From the P&L and B/S that you have prepared, answer these questions:
- What is the balance of your bank account? = X
- What is the total of your net current assets or working capital at the end of the year? = Y
- What is the profit or loss before tax reported in the first year of operation? = Z
The cache can be found at:
S37° 30.(X+Y+Z) *3 + 22
E145° 08.(X+Y+Z) *3 - 14
You can validate your puzzle solution with certitude.
We have chosen locations for caches where safe parking is available. Under NO circumstance should driveways and gates be blocked or used for parking. With nearby property owners in mind, these geocaches have been placed out of view, so as not to cause alarm. If you feel a location is causing concern to nearby homeowners, please let us know.
