Income Statement and Income Statement Financial - Desklib

INCOME
STATEMENET AND
INCOME
STATEMENT
FINANCIAL
Contents

TASK...............................................................................................................................................3
1. Prepare statement of profit and loss and balance sheet of A plc.............................................3
2. Calculate Net present value Internal Rate of Return and payback period for the company.
Also advice on such investments. State non-financial factors which may affect the business
decision........................................................................................................................................5
4. Compute ratios for D Plc same as of calculated from E Plc....................................................7
b. Critically evaluate the performance of D Plc by comparing it with E Plc..............................9
REFERENCES..............................................................................................................................10

TASK
1. Prepare statement of profit and loss and balance sheet of A plc.
Statement of Profit and Loss of A Plc
Particulars Amount Amount
Sales 28000
Less: Cost of Goods Sold -19000
Gross Profit 9000
Less: Overheads
Salaries and wages 480
Selling expenses 700
General expenses 300
Distribution expenses 900
Promotion and advertising 485
Audit fee 150
Directors' remuneration 220
Debenture interest paid 300 3535
Net profit 5465
less: Taxation 600
Profit After tax 4865
Cost of Goods Sold = Opening inventory + purchases – closing inventory
= 5000 + 21000 – 7000
= 19000
Balance sheet as at 31/12/2021
Particulars £000 £000
Fixed Assets
Land and Building 9000
Furniture and fitting 1500
Vehicles 3500
Total Fixed Assets 14000
Depreciation
Furniture and fitting 650
Vehicles 1180
Total Depreciation 1830
Value of Fixed Assets 12170
Current Assets
Receivable 1200
Bank 20
Cash 15