Financial Analysis of Kedison PLC: Accounting Fundamentals

ACCOUNTING
FUNDAMENTALS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
QUESTION- 1.................................................................................................................................3
a) Financial statements of Kedison PLC.....................................................................................3
Statement of financial position balance......................................................................................6
Question 2........................................................................................................................................6
Ratio analysis .............................................................................................................................6
Comment on financial position...................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Financial analysis is all about analysing and evaluating about the financial position of the
business entity. This report will discuss the analysis of the financial position or situation of the
company. Henceforth, report will emphasis over the financial position of the organisation with
support of financial statements such as profit and loss account and balance sheet of the company.
Furthermore, this report will also discuss the overall performance of the business entity with
support of projection of all different ratios regarding liquidity, profitability, liquidity and such
like practices.
MAIN BODY
QUESTION- 1
a) Financial statements of Kedison PLC
Profit and loss statement for the year ended 31st December 2020
Particulars Amount
Sales 826650
Less: Cost of Sales -578650
Gross Profit 248000
(-) Administrative expenses -30000
(-) Interest paid -4000
(-) Directors remuneration -5000
(-) Distribution costs -28000
(-) Sales commission -3000
(-) Corporation tax -68000
Net Profit 110000
(-) Preference dividend -30000
Earnings available to equity shareholders 80000
(-) Ordinary dividend -20000