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Accounting Fundamentals: Profit and Loss Statement, Financial Ratios, and Analysis

Assignment- A1 for the Accounting Fundamentals module in the BA Business Management program.

8 Pages1384 Words410 Views
   

Added on  2023-06-18

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This article covers accounting fundamentals including profit and loss statement, financial ratios, and analysis. It includes a sample profit and loss statement for Kedison PLC and calculation of ratios for Chocco Plc. The article also provides insights into liquidity, solvency, efficiency, and profitability analysis of Chocco Plc. References are also provided for further reading.

Accounting Fundamentals: Profit and Loss Statement, Financial Ratios, and Analysis

Assignment- A1 for the Accounting Fundamentals module in the BA Business Management program.

   Added on 2023-06-18

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ACCOUNTING
FUNDAMENTALS
Accounting Fundamentals: Profit and Loss Statement, Financial Ratios, and Analysis_1
Table of Contents
QUESTION: 1.................................................................................................................................3
Profit and Loss statement for the year ended 31st December 2020 for Kedison PLC................3
QUESTION: 2.................................................................................................................................4
Calculation of ratios for Chocco Plc............................................................................................4
Financial performance and financial position analysis of Chocco Plc........................................7
REFERENCES................................................................................................................................8
Accounting Fundamentals: Profit and Loss Statement, Financial Ratios, and Analysis_2
QUESTION: 1
a)
Profit and Loss statement for the year ended 31st December 2020 for Kedison PLC
Particulars Amount
Sales
Add: Goods sent to customers on credit
826650
980
827630
Less: Cost of sales 578650
Gross profit 248980
Less:
Administrative expenses 30000
Distribution costs 28000
Interest paid 2000
Director’s remuneration 5000
Outstanding salesmen’s commission 3000
Net profit 180980
Less: Corporation tax 68000
Net profit after tax 112980
Less:
Preference dividend 30000
Ordinary dividend 20000
Profit for the year 62980
Add: Retained profit in the beginning of the year 132000
Retained profit as at 31st December 2020 194980
Statement of financial position as at 31st December 2020
Particulars Amount
Non – current assets
Plant and equipment 632730
Current Assets
Stock 330600
Debtors
Add: Goods sent to customers on credit
170125
980
171105
Cash and bank 12900
Total Assets 1147335
Current liabilities
Trade creditors 171355
Outstanding salesmen’s commission 3000
Corporation tax 68000
Accounting Fundamentals: Profit and Loss Statement, Financial Ratios, and Analysis_3

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