Accounting Fundamentals: Income Statement and Balance Sheet Analysis

Fundamentals

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
QUESTION 1...................................................................................................................................3
a) .................................................................................................................................................3
b....................................................................................................................................................4
QUESTION 2...................................................................................................................................5
a. ..................................................................................................................................................5
b. ..................................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

MAIN BODY
QUESTION 1
a)
Income statement of Kedison Plc at the end 31st December is enumerated below;
Particulars Amount (£’000)
Revenue 826650
Less: COGS 578650
GP 248000
Less: Administration expenses 30000
Less: Distribution costs 28000
Less: sales commission 3000
Less: Directors remuneration 5000
Less: Interest paid 4000
Earnings before tax 178000
Less: Tax paid 68000
Profit after tax 110000
Less: reference dividend 30000
Amount for equity shareholder 80000
Less: ordinary dividend 20000
Net income 60000
Balance Sheet for Kedison PLC as on date 31st December 2020

Particulars Amount (£’000) Amount (£’000)
Assets
Fixed assets
Plant and equipment 632730
Total fixed assets 632730
Current Assets
Debtors 171105
Cash and bank 12900
Stock 329620
Total Current assets 513625
Total assets 1146355
Liabilities
Long term liabilities
4% debenture 100000
Total non-current liabilities 100000
Current liabilities
Trade creditors 171355
Outstanding commission 3000
Corporate tax 68000
Outstanding interest 2000
Total current liabilities 244355
Shareholder equity
Ordinary share 310000