Income statement The income statement or the profit and loss account as it is also called measures reports how much profit (wealth) has the business generated over a period of time. To measure profit the total generated revenue over a period must be identified. Revenue is a measure of inflow of economic benefits arising from the operations of the business. These benefits will either result in an increase of assets such as cash or amounts owed to the business by the customers or a decrease
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A balance sheet is a statement businesses produce that outlines their assets and liabilities. It is a snapshot of their fixed assets‚ current assets‚ current liabilities and long term liabilities for a specific moment in time such as the end of a financial year. Using these figures‚ a business is able to calculate their net working capital; how much the business is worth‚ whether it can afford to expand and if it is a good venture for investors. There are different groups of people who are interested
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The Income Statement This indicates financial performance over a period of time. It is usually done at the end of a financial year (30th June)‚ but an income statement can be made up at other times‚ e.g.‚ if a business wishes to apply for a loan‚ the bank may ask for a more recent income statement. The other names for this kind of statement are Revenue Statement and Profit and Loss Statement. Income Statement for Ima Mess‚ year ended 30.6.12 |
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6. A proforma cost sheet of a company provides the following particulars : Elements of Cost Material 40% Direct Labour 20% Overheads 20% The following further particulars are available: (a). It is proposed to maintain a level of activity of 2‚00‚000 units. (b).Selling price is Rs.12 per unit (c) Raw materials are expected to remain in stores for an average period of one month (d) Materials will be in process‚ on averages half a month. (e) Finished goods are required to be in stock for
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Key pointers to balance sheet and profit and loss statements: A balance sheet represents the financial affairs of the company and is also referred to as “Assets and Liabilities” statement and is always as on a particular date and not for a period. A profit and loss account represents the summary of financial transactions during a particular period and depicts the profit or loss for the period along with income tax paid on the profit and how the profit has been allocated (appropriated).
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purchased Rs. 30. 6) Sold goods to Nanabhai for cash Rs. 400. 7) Paid to Navakal Rs. 500 for Advertisement. 8) Paid to Kishanchand for salary Rs. 1000. 9) Paid into Bank account Rs. 2500. 10) Withdraw from bank for personal use Rs. 300. Trial Balance - 9100 Problem No. – 2 From the following transactions find out which two accounted‚ types of Accounts‚ Debited/Credited & Reason for Debit or Credit. 1) Started business with Rs. 100000. 2) Purchased goods from Pandurang on credit Rs. 1200.
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charged $3‚635‚223 depreciation on the income statement of Andrews. Andrews plans to make investment that will increase this depreciation to take advantage of changes in the tax code. Will this?a. Decrease net cash from operations on the cash flow statementb. Increase net cash from operations on the cash flow statementc. Just impact the balance sheet.d. Have no impact on the net cash from operations as depreciation appears in both cash flow and income statementAnswer | Selected Answer:
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John Tierney Case study 8 11/2/2013 1) As a late mover into the US intercity bus market‚ what advantages and disadvantages does Megabus have? Megabus being a late mover in the US‚ has allowed the company to learn from past mistakes by companies such as Greyhound‚ who filed for bankruptcy in the mid 90’s and who lost most of it’s business due to poorly maintained terminals‚ high prices for fares and unsafe conditions. Megabus’s advantages include fares as lows as 1 dollar‚ free wi-fi
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soccesfield Content The absolute goal of Ciclón de Alicante is to become a major soccer club in Spain. But how? The stadium • Q: What is the impact of the sale of the stadium transaction on Ciclón’s 2003 Income Statement and Statement of Cash Flows (under the Indirect Method)‚ and on its Balance Sheet for the year ended on December 31th‚ 2003? Items to be addressed cash payment of $ 100 million cost of building the new stadium was $ 20 million market value of the land was $ 12 million the book value
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Chapter 3 The Balance Sheet and Financial Disclosures Questions for Review of Key Topics Question 3-1 The purpose of the balance sheet‚ also known as the statement of financial position‚ is to present the financial position of the company on a particular date. Unlike the income statement‚ which is a change statement that reports events occurring during a period of time‚ the balance sheet is a statement that presents an organized array of assets‚ liabilities
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