Blakemore's Bakery: Profitability Analysis and Ratio Evaluation

Blakemore's
Bakery

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The present report is based on Blackmore’s Bakery, a small type of family running by
round 20 people. It is making wide variety of the Bakery products and had retail counter for
serving local community and also supplies to the small shops within the local area. Furthermore,
the study involves preparation of income statement in order to ascertain profitability and to
analyze the ratios in relation to profitability of the company. Moreover, the study highlights the
profitability ratios for the purpose of measuring the performance of an entity in an effective and
efficient manner. This report will present he information regarding financial position and
performance of the firm.
TASK 1
The layout of a profit and loss account
Name of Company:
Blakemore’s
Bakery
Trading, Profit and Loss Account: For the
Year Ending 15000
Particulars £ £
Sales 475000
Less Cost of Sales :
Opening Stock 10000
Plus Purchases 205000
215000
Less Closing Stock 15000