Accounting for Managers: Income Statement, Balance Sheet, and Financial Ratios

Running Head: ACCOUNTING FOR MANAGERS
1
ACCOUNTING FOR MANAGERS

ACCOUNTING FOR MANAGERS 2
Contents
Question 1..................................................................................................................................3
Part A......................................................................................................................................3
Part B......................................................................................................................................3
Question 2..................................................................................................................................4
Part A......................................................................................................................................4
PART B..................................................................................................................................5
References..................................................................................................................................6

ACCOUNTING FOR MANAGERS 3
Question 1
Part A
Key Kennet
Income statement
(For the month ending 31st July 20X9)
Particulars Amount Particulars Amount
Building supplies $ 3,10,000.00 By Building services $ 5,50,000.00
Electricity and telephone expenses $ 4,000.00
Motor vehicle expense $ 5,600.00
Wages $ 1,50,000.00
Net Profit $ 80,400.00
$ 5,50,000.00 $ 5,50,000.00
Key Kennet
Balance sheet
As at 31st July 20X9
Particulars Amount Particulars Amount
Capital $ 3,300.00 Current Assets
Add: net profit $ 80,400.00 Cash in bank $ 3,800.00
Less: Drawings $ -5,700.00 Cash in shoe box $ 500.00
Current liabilities Accounts Receivable $ 80,000.00
Accounts payable $ 30,000.00
Building supplies in
hand $ 18,000.00
Outstanding wages $ 3,500.00 Non-Current Assets
Non-Current Liabilities Equipment $ 68,000.00
Other liabilities $ 90,800.00 Motor vehicle $ 32,000.00
$ 2,02,300.00 $ 2,02,300.00
Part B
Accounting is regularly called "the language of business since it imparts the decision making
capacity of the owner, investors and majorly suppliers. This financial statement’s helps the
suppliers to make the decision of the trading of the business. These individuals are altogether
partners in the business, or, in other words they're keen on its exercises since they're
influenced by them.