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Building Finance and Income Statements

   

Added on  2020-02-24

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Running head: BUILDING FINANCIAL AND INCOME STATEMENTSBuilding Financial and Income StatementName of the StudentName of the UniversityAuthor’s Note
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1BUILDING FINANCIAL AND INCOME STATEMENTSFirst PartThere will be certain source of revenues for this business. The majority portion of therevenue will come from the sales of construction projects like flats, houses, businessspaces and others. This will be considered as segment revenues. In addition, other sourcesof revenue will be sale of goods, revenue from interest, various contracts, managementservice fees and others. This will be considered as revenue from other businessoperations.Revenue drivers refer to some important aspects to revenue models that help in theincrease of revenues for the companies. In this particular construction business, there is amajor revenue driver. This revenue driver can be described as Square Feet Area x Rateper Square Feet. It can be seen that all the products of a construction business like flats,business spaces and others are sold based on square feet. For this reason, this isconsidered as the main driver (Akan, Ata & Dana, 2015).The revenue structure of my company is shown below:Revenue StructureResidentialCommercialParticulars AmountAmountRevenues from Segment operations Sales from Residential and Commercial SpacesXXXXXXTotalXXXXXXRevenues from Other operations Sale of other GoodsXXXXXXRevenue from Interests XXXXXXRevenues from various ContractsXXXXXXManagement Service FeesXXXXXXTotalXXXXXXTotal RevenuesXXXXXXFrom the above discussion, it can be said that there are two major sources of revenues inthe company. They are revenues from segment operation and revenues from other operations.
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2BUILDING FINANCIAL AND INCOME STATEMENTSIn the revenue structure, implementation of advanced technology will help to drive therevenue of the company. The company will be able to deliver high quality and luxuriousconstruction projects to its customers with the help of latest technologies. In addition,latest IT technologies will help to reduce various costs of the company. All these aspectstogether will help to increase the revenue of the company (Wang, 2012).Second PartI shall use some specific sources for the comparisons between my company and thebenchmark company. First, I shall use the annual report of the benchmark company inorder to find the accounting regulation and structure of revenue and others. Second, Ishall collect the required information of the benchmark company from the officialwebsite of the company. I shall use these two sources for the comparison (Čihák et al.,2012).Third PartI have selected one of the major construction companies named Global ConstructionService Limited (GCS) as the benchmark company. For GCS, revenues from externalsources include two sources; they are segment revenue and intersegment revenue. Othersources of revenues include hire of equipment and related services; revenue from variouscontracts; sales of other sources; revenues from management services, revenues frominterests and others.The revenue structure of GCS is shown below:
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