Accounting- an Example of Chairman's Report
SUNSET COSMETIC INC
CHAIRMAN'S REPORT 2012
Business review
The company have achieved successful result in 2012 but not as profitable as the previous years. Due to a lot of new cosmetic product arises, the market of the business have slightly changed. The business have to fight in improving the quality and keep track to create new products in attracting more customers. Despite the competitions, the sales of the company have an 4.3% increase from $670,000 to $700,200. This indicates Sunset Cosmetic have not been left out by the market and still obtain a dominant position.
Balance sheet
The company have a net asset of $669,093.50. During the year, the business obtained more assets in comparing to the passed years. The total asset of the business have a value of $ 755,493.50. The company is now more financially stabled and firm. The working capital is at $ 302,493.50, this shows the company is capable in paying it's immediate debts.. The company now obtain less liabilities in compare with the passed years. An decrease of 21% in liability have resulted at the end of the year.
In demand of cash, the company have issued out shares at $ per share. The Paid-in capital now have increased to $510,000. The retain earning of the business came in at $96093.50, an impressive 22% increase over the previous year. The land have restated as a value of $40,000 and building have restated as a value of $ 23,000
Profitability
The profit of the company tremendously decreased from $355,650(2011) to $76,093.50. The business have achieved a total revenue of $636,320, an 7.6% decrease in compare to the previous year. Due to the demand of the changes in the market, more expenses were applied to the company and caused an huge increase in expense. The total expenses of the company, increased from $329,350 to $517,726.50. Of course, decrease in profit was also influenced by the arises of new cosmetic competitors.
Staff
I am very proud of the hard work and
CHAIRMAN'S REPORT 2012
Business review
The company have achieved successful result in 2012 but not as profitable as the previous years. Due to a lot of new cosmetic product arises, the market of the business have slightly changed. The business have to fight in improving the quality and keep track to create new products in attracting more customers. Despite the competitions, the sales of the company have an 4.3% increase from $670,000 to $700,200. This indicates Sunset Cosmetic have not been left out by the market and still obtain a dominant position.
Balance sheet
The company have a net asset of $669,093.50. During the year, the business obtained more assets in comparing to the passed years. The total asset of the business have a value of $ 755,493.50. The company is now more financially stabled and firm. The working capital is at $ 302,493.50, this shows the company is capable in paying it's immediate debts.. The company now obtain less liabilities in compare with the passed years. An decrease of 21% in liability have resulted at the end of the year.
In demand of cash, the company have issued out shares at $ per share. The Paid-in capital now have increased to $510,000. The retain earning of the business came in at $96093.50, an impressive 22% increase over the previous year. The land have restated as a value of $40,000 and building have restated as a value of $ 23,000
Profitability
The profit of the company tremendously decreased from $355,650(2011) to $76,093.50. The business have achieved a total revenue of $636,320, an 7.6% decrease in compare to the previous year. Due to the demand of the changes in the market, more expenses were applied to the company and caused an huge increase in expense. The total expenses of the company, increased from $329,350 to $517,726.50. Of course, decrease in profit was also influenced by the arises of new cosmetic competitors.
Staff
I am very proud of the hard work and