Financial Accounting Assessment with Income Statement and Cash Flow Statement

Financial Accounting
ASSESSMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
B. Explaination of added back and deducted values from CFS:......................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

TASK
Question 1:
A. Income Statement for the year ended 31 December 2020
Particulars Amount(£)
Sales Revenue 164000
Less : Cost of goods sold -101600
Drawings 500
Gross Profit 62900
Less: Operating expenses:
 Discount allowed 920
 Rent & rates 8000
 Heating & lighting 4500
 Salaries & wages 37000
 Carriage outward 1500
 Motor Running Cost 720
 Depreciation on Delivery van 2250
 Dep. On shop fitting 1700 -56590
Operating income 6310
Add: Discount received 500
Income before taxation 6810
Less: tax 0
Net Profit £6810
Working Note:
 Cost of Goods Sold: Opening stock + purchase – closing stock
= 6000 + 100000 - 4400 = 101600