Analysis of Financial Statements of Saminul

Running head: ACCOUNTING AND INFORMATION SYSTEM
Accounting and Information System
Name of the Student:
Name of the University:
Author’s Note:

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ACCOUNTING AND INFORMATION SYSTEM
Table of Contents
Introduction......................................................................................................................................2
Analysis of Financial Statements.....................................................................................................2
Reference.........................................................................................................................................6
Appendix..........................................................................................................................................7

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ACCOUNTING AND INFORMATION SYSTEM
Introduction:
In this particular report, the analysis of financial statements of Saminul has been
demonstrated for evaluation of several items that are presented. The business of Saminul carries
out the transactions that are related to the wide-ranging business functions. Main activities of
business are to carry out stock trading activities. Recording of such transactions are done in the
form of journals in the books of account of company (Simkin et al. 2014). The appendix section
presents the various financial statements of company.
Financial Statements analysis:
The trial balance has been prepared that depicts all the transactions that have occurred by
carrying out the business activities during the month of May. Verifying the numeral accuracy of
trail balance is the main objective of preparing trail balance. In order to depict that whether the
financial statements are free from any human errors while preparation of trial balances the debit
side of such statement should be equal to credit side (Prasad and Green 2015). A sales of amount
$ 9,829 is generated by business as presented by the trail balance and the cost of goods stood at $
5932 that shows the business production cost. Moreover, some of the items that are incorporated
while preparing trial balance include liabilities, assets, expenses, and income and capital
contributed owner. As depicted in the appendix of trial balance statement, the total amount of
credit and debit balance stood at $ 566660.
The total amount of profit that the business earns during any particular reporting year is
presented in the statement of profit and loss. Al the income earned and expenses incurred by the
business are summarized in this statement by segmenting all the items of expenses and items of
income. Total amount of loss that has been incurred by activities of Saminul during a month as

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ACCOUNTING AND INFORMATION SYSTEM
depicted in the profit and loss statement shown in the appendix stood at $ 2822. The reason that
is attributable to this increase is loss is increase in operating expenses and the amount is
considerably higher at amount $ 7,425 compared to previous time period. The pie chart presented
below helps in explaining the analysis and classification business operating expenses (Laudon
and Laudon 2016).
Depreciation
4%
Interest Expense
28%
Motor Vehicle Expenses
7%
Rent
61%
Operating Expenses
Depreciation Interest Expense
Motor Vehicle Expenses Rent
Figure 1: (Pie Chart depicting Expenses of the Saminul for the May month)
Source: (Created by Author)
An amount of $ 7425 is incurred by operating activities of business of Saminul as
presented in the pie chart. However, the major amount of expenses that have been incurred by
business is in relation to rent paid and the total amount of rent paid stood $ 4,545. The total
amount of operating expenses comprises of 61% of total expenses that has been incurred by
business and such expenses are of fixed nature. Moreover, an interest expense of $ 2,042 has
been incurred by business that comprise of 28% of total amount of expenses incurred on
operations. Total amount of interest expenses comprise of the loan that is taken by the business