Professional Documents
Culture Documents
Carley N
Carley N
Payments
Material purchases $ 3,450 $ 3,780 $ 2,890
Direct wages $ 1,300 $ 1,300 $ 1,300
Overheads $ 2,900 $ 2,900 $ 2,900
Selling, Distr. & Admin $ 1,590 $ 1,590 $ 1,590
Vehicle $ 9,870
Total $ 9,240 $ 19,440 $ 8,680
Depreciation amount of 300 has been excluded from the overhead payment figures because it is non cash item
use it is non cash item
Ratio analysis for Tailspin Industries
2018 2019
Gross Margin 35/70*100=50% 48/60*100=60%
Profit Margin 21/70*100=30% 26.67/80*100=33.33%
Total Exp 35-21 =14 48-26.67=21.33
ROCE 21.2/84*100=25.24% 26.97/133.35*100=20.22%
Current Ratio 12/5=2.4:1 16/2+6=2.1:1
Liquid Ratio 12-5/5=1.4:1 16-11/8=0.63:1
Debtors Turnover Ratio 4/50*365=30 days 5/55*365=34days
Creditors Turnover Ratio 5/30*365=61 days 6/32*365=69 days
Inventory Turnover 35/4.75=7.4 times 32/8=4 times
Current Assets 5+4+3=12 11+5=16
COS 4.5+50-5=49.5 9+16-11=14
Sales $ 19,740
Cos
Op.Stock $ 2,970
Purchases $ 11,280
$ 14,250
Closing Stock $ (2,380) $ 11,870
Gross Profit $ 7,870
Add Income
Disc. Received $ 360
Decrease in provision for doubtful debts $ 30 $ 390
$ 8,260
Less expenses
Repairs to motor vehicle $ 450
Rent ($2580 + $350) $ 2,930
Salaries ($1020 – $240) $ 780
Discounts allowed $ 810
Insurance $ 690
Depreciation ($170 + $350) $ 520 $ 6,180
Profit for the year $ 2,080
Balance Sheet as at 28 February 2019
Cost Accumlated Net Book Value
depreciation
Non– current assets
Current assets
Closing Stock $ 2,380
Debtors $ 4,920
Provision for doubtful debts $ 240 $ 4,680
Current liabilities
Less expenses
Depreciation – Office equipment $ 900
Motor vehicle $ 970
Salaries $ 8,415
Rent ($1400 + $200) $ 1,600 $ 11,885
Profit for the year $ 7,365
Add: interest on drawings – Sunaina $ 200
– Fatima $ 310 $ 510
$ 7,875
Less: interest on capital – Sunaina (10% x $20 000) $ 2,000
– Fatima (10% x $19 000) $ 1,900 $ 3,900
$ 3,975
Profits to be shared – Sunaina 1/5 $ 795
– Fatima 4/5 $ 3,180
Balance Sheet as at 31 July 2018
Cost Accumlated Net Book
depreciation Value
Non– current assets
Current assets
Closing Stock $ 15,780
Debtors $ 21,000
Sales $ 14,300
Less: Cost of goods sold
Op. Stock $ 2,000
Purchases $ 6,750
$ 8,750
Closing Stock $ 2,362 $ 6,388
Gross Profit $ 7,912
Income and expenditure account for the year ended 31 December 2018
Income
Gross profit from café $ 7,912
Members' annual subscriptions $ 15,900
Donations $ 3,650
Visitors entrance fees $ 8,650
$ 36,112
Expenditure
Rates and insurance $ 2,850
Staff wages $ 22,000
Stationery, phone, postage $ 350
Veterinary bills $ 5,000
Animal food $ 2,550
Depreciation $ 1,470 $ 34,220
Surplus $ 1,892
Statement of financial position for the year ended 31 December 2018
Accumulated fund
Balance at 1 January 2018 $ 40,875
Surplus of income over expenditure $ 1,892
$ 42,767
Current liabilities