logo

Income Statement and SOFP Analysis, Financial Ratios and Investment Appraisal

   

Added on  2023-06-18

6 Pages863 Words275 Views
Online Exam
Income Statement and SOFP Analysis, Financial Ratios and Investment Appraisal_1
SECTION A
Income Statement for the year ended 31/12/2020 (£000)
Sales 20000
Cost of sales
Opening inventory 2000
Purchases 15200
Closing inventory (2500) (14700)
Gross Profit 5300
Expenses
Selling expenses 700
Administration cost (400-100) 300
Audit fee (70 +200) 270
Debenture interest (60+200) 260
Distribution expenses 200
Salaries (900 + 300) 1200
Depreciation of machinery (3000 – 500) x 0.2 500
Depreciation of buildings (2400 x 0.05) 120
Directors’ remuneration 300
Bad debt 30 (3880)
Profit Before Tax 1420
CT (200)
Profit After Tax 1220
Dividends – Interim paid 50
- Final proposed (8000 x £0.03) 240 (290)
Retained profit for the year 930
Retained profit b/f 1390
Retained profit c/f 2320
b)
SOFP as at 31/12/2020 (in £000s)
Income Statement and SOFP Analysis, Financial Ratios and Investment Appraisal_2
Non – current assets Cost Accumulated
Depreciation
NBV
Freehold premises 6000 ---- 6000
Building 120 2400 400 + 120 = 520 1880
Machinery 500 3000 500 + 500 = 1000 2000
11,400 1520 9880
Current assets
Inventory 2500
Receivables 1400
Prepayment 100
Bank 130
Cash 50 4180
Total assets 14060
Share capital
£1 Ordinary shares 8000
Reserves
Retained profit 2320
Shareholders’ funds 10320
Non- current liabilities
5% Debentures 1600
Current liabilities
Accruals (30+20+20) 70
Payables 1000
CT 200
Proposed dividend 240 1510
Shareholders’ funds & liabilities 14060
SECTION 2
Question 2
Income Statement and SOFP Analysis, Financial Ratios and Investment Appraisal_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Accounting for Business: Sales, Cost of Goods Sold, Ratios, Cash Inflows
|6
|839
|386

Accounts, Ratios and Financial Viability for J Ltd
|6
|975
|255

Accounting for Business: Sales, Ratios, and Cash Inflows
|6
|792
|98

Accounting Exam: Income Statement, Financial Position, Ratios, Cash Flow, NPV, IRR
|11
|2171
|148

Contemporary Financial Accounting: Partial and Full Goodwill Methods
|10
|1108
|463

Contemporary Financial Accounting: Partial and Full Goodwill Methods
|11
|1400
|222