Financial Analysis of Nobaira Mehreen Hassan Company

Running head: ACCOUNTING FOR INFORMATION SYSTEM
Accounting for Information System
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1
ACCOUNTING FOR INFORMATION SYSTEM
Table of Contents
Introduction......................................................................................................................................2
Analysis of the Books of Accounts.................................................................................................2
Reference.........................................................................................................................................6
Appendix..........................................................................................................................................7

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ACCOUNTING FOR INFORMATION SYSTEM
Introduction
The main focus of the report is to analysis the financial statement of Nobaira Mehreen
Hassan Company which is engaged in the trade business of socks. The financial analysis is to be
considered on the basis of the trial balance, income statement and balance sheet which is
prepared by the business during the month of May. The transactions which the business has
undertaken during the month has been done on the basis of preparation of Ledger accounts and
financial statements of the company.
Analysis of the Books of Accounts
As per the trial balance which is prepared by the company, the sales of the company is
shown to be $ 9,829 and the expenses which the business incurs for carrying out the production
of goods is shown as Cost of good sold which is shown to be $ 5,932. The cost of good sold of
the company is shown to be of significant amount which is the basic reason due to which the
company has incurred a loss during the year as shown in the profit and loss account of the
business (Ballings et al. 2015). The trial balance is prepared by the business is to show numerical
accuracy of the statement and the entries which are made by the business.
The profit and loss account show how much profit the business can make during the
month. The company shows all expenses and income during the month which the business earns
or accrue (Ciftci and Darrough 2015). The primary source of income for the business is shown to
be generated from the sales of socks. The business also has made investments from which the
company earns interest income which is shown for the month as $ 706. In order to present the
expenses which the business incurring which are related to operating activities of the business
are shown in a pie chart form as given below: