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Accountancy: Income Statement, Financial Position, Ratios, Break-even Analysis

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Added on  2023-06-09

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This article covers income statement, financial position, ratios, and break-even analysis in accountancy. It includes solved assignments, essays, and dissertations on accountancy. The subject is accountancy and it includes course code, course name, and university/college name if mentioned.

Accountancy: Income Statement, Financial Position, Ratios, Break-even Analysis

   Added on 2023-06-09

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ACCOUNTANCY
Accountancy: Income Statement, Financial Position, Ratios, Break-even Analysis_1
INTRODUCTION
TASK
Question 1
a) Income statement for the year ending 30th June 2020
Particulars Amount Amount
Sales
Less: cost of goods sold:
Opening stock
(+) purchases
(-) closing stock
45
500
(50)
1000
(495)
Gross profit 505
Less: Operating expenses
Rates.
(-) Prepaid
40
(4) 36
Insurance
(-) Prepaid
20
(3) 17
General expenses 22
Energy bills
(+) Outstanding
25
2 27
Audit fees
(+) Accrued
13
2 15
Bad debts 1
Director’s remuneration 52
Debenture interest 10
Interest on bank loan 3
Salary and wages 150
Accountancy: Income Statement, Financial Position, Ratios, Break-even Analysis_2
Depreciation on equipment
@ 25%
20
Depreciation on vehicles
@20 %
40
Total operating cost 393 (393)
Net profit 112
Less: Taxation 22
Net profit after tax 90
(B) Statement of Financial Position as at 30th June 2020
Particulars Amount Amount
Non-current assets
Equipment
Less: Depreciation (20+20)
Vehicles:
Less: Depreciation (45 + 40)
100
(40)
200
(85)
60
115
Question 2: a)
Calculation of ratios:
1. Gross profit
2020: gross profit = gross profit / net sales *100
= 40/100*100
= 40%
2021: gross profit = gross profit / net sales *100
= 43 / 110 *100
= 43%
2. Net profit ratio:
2020: net profit ratio = Net profit / net sales * 100
= 10/ 100*100
Accountancy: Income Statement, Financial Position, Ratios, Break-even Analysis_3

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