Target: separate a service activity from trading goods and route accounts/results to the three named statements. Prepare: Cases B/C, statement sorter aid.
- Launch · 2 min. Ask whether tutoring uses inventory sold to customers in B. B is a service model; C sells printed goods.
- Model · 4 min. In C, $2,400 sales − $1,100 Cost of Goods Sold − $550 other expenses = $750 profit. Statement of Profit or Loss reports period income/expenses; Statement of Financial Position reports resources/obligations/equity at a date; Statement of Cash Flows reports cash movements by category. The C case lacks balances for a full position statement.
- Guided reading · 5 min. Sort inventory, receivable, payable, COGS, net profit and net cash from operations into account/statement roles. Inventory is an asset until sold; COGS is an expense of goods sold in this model.
- Practice route · 7 min. Select Day 4 route. Calculate C's profit, name the three statements and write one reason the cash figure is not automatically profit.
- Audit · 4 min. Repair “cash collected $1,900 is revenue $1,900.” C states sales revenue $2,400; timing of collection differs.
- Exit · 3 min. “Which statement would show $750 net profit?” Expected: Statement of Profit or Loss.