Financial and Data Analysis for Military Might Limited

Financial and Data
Analysis

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1:..........................................................................................................................................3
Task 2: Calculation of Financial Ratios for Military Might Limited:..........................................5
.......................................................................................................................................................14
Task 3:........................................................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
The process of critical evaluation of the financial information contained in financial
statements to understand and make decisions regarding the operations of the firm is called
'Financial Statement Analysis'. It is basically a study of relationship among various facts and
figures as given in a set of financial statements, and the interpretation thereof to gain an insight
into the profitability and operational efficiency. The preparation of financial statements is a
prerequisite of analysis. Preparation of financial statements is one of the last steps in accounting
cycle. This report contains preparation of financial statements of Military Might Limited.
Military Might Limited is a private limited company based in the UK that sells outdoor
equipment. Further budget preparation and budgetary controls are explained in context of
Military Might Limited. A budgetary control is a technique whereby the actual results are
compared with budgets to find out variances. In addition, the behavioural aspects of budgetary
control are discussed.
MAIN BODY
Task 1:
STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER
2021 FOR MILITARY MIGHT LIMITED
£m
Revenue 996
Less: Cost of Sales 645
Gross Profit 351
Less: Operating expenses (W1) 334
Profit from operations 17
Profit before Interest and Tax 17
Less: Finance costs 11
Less: Tax on profit on Ordinary
activities
2
Profit for the year 4
WORKINGS £m £m
(W1) OPERATING EXPENSES
Selling expenses 80
Distribution expenses 90

Other administration expenses 164
Total 334
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021
FOR MILITARY MIGHT LIMITED
£ £
Non-current assets
Property, Plant & Machinery (W2) 524
Long-term investments 24
Total 548
Current assets
Inventory 200
Trade Receivables 185
Cash at Bank 10
395
Current liabilities
Trade Payables 70
Taxation payable 2
72
Net Current Assets (Current Assets – Current
Liabilities)
323
Non-current liabilities
Bank Loans 370
370
Equity and Liabilities
Share Capital 32
Retained Earnings 469
501
Equity and total liabilities 943
WORKINGS £m £m