Financial Analysis

Running Head: Financial Analysis 1
Financial Analysis

Running Head: Financial Analysis 2
Table of Contents
Introduction.................................................................................................................... 3
A................................................................................................................................. 3
B)................................................................................................................................ 5
C)................................................................................................................................ 5
D)................................................................................................................................ 5
E)................................................................................................................................ 6
Conclusion.................................................................................................................. 6
References..................................................................................................................... 7

Running Head: Financial Analysis 3
Introduction
The financial statements are the statements that are prepared in accordance with the guidelines so
that the accurate reporting of the financial statements will help in making the decisions for the
future business operations. These financial statements are used by various users to have fulfilled
their own agendas and ideas. The financial statements are the ultimate guide towards any
organization (Guay, Samuels and Taylor, 2016).
A
The income statement is presented and it can be observed that the revenue is $24260, whereas
the expenses have been higher than the revenue earned by the Chalkboards. The company also
prepared the balance sheet and the cash in hand being $44806 and the liabilities are majorly due
to the loan and the accounts payable. Instead of purchasing on credit the company must pay the
down payment in cash to avoid the higher liability.
Income statement
(For the month ending 31st June 2018)
Particulars Amount Particulars Amount
By Revenue 24260.64
Cost of Goods Sold 38209.6 Service revenue 300
Discount on sales 1655.64
Bad Debts expense 15
Depreciation Expense 17656
Insurance Expense 4580
Inventory Loss 1200
Interest Expense 2520
Supplies Expense 180
Wages Expense 2731
Net Profit/loss -44186.6
68747.24 24560.64