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Introduction of Accounting and Finance : Assignment

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Added on  2020-11-12

Introduction of Accounting and Finance : Assignment

   Added on 2020-11-12

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INTRODUCTION OFACCOUNTING AND FINANCE
Introduction of Accounting and Finance : Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1Income statement........................................................................................................................1Balance sheet...............................................................................................................................1QUESTION 2...................................................................................................................................2A. Calculation of contribution per unit ......................................................................................2b. Calculating BEP and margin of safety....................................................................................3c. Calculating profit on 48000 tables..........................................................................................4D. Analysing the strategy for Clarkenpark Ltd...........................................................................5E. Explaining underpinning assumptions of break-even model..................................................6QUESTION 3...................................................................................................................................7a. Recommendations...................................................................................................................7b. Explaining and analysing key merits and demerits of various investment appraisaltechniques....................................................................................................................................9c. Representing budget with its benefits and limitations as tool for strategic planning............12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15
Introduction of Accounting and Finance : Assignment_2
INTRODUCTIONAccounting and finance is required in the company so that operational activities may behandled properly. Present report deals with various scenarios in which financial statementsnamely income statement and balance sheet both are prepared for Gravepals Plc. Moreover,break-even analysis will be conducted for Cornpeace Ltd in which BEP in units and GBP alongwith margin of safety will be calculated. Furthermore, investment appraisal techniques such asNPV, ARR and payback period will be computed for Dane Jones Ltd and recommendation willbe provided whether to invest in it. Moreover, merits and demerits of budgets and investmentappraisal techniques will also be discussed.QUESTION 1Income statementIncome statementParticularsDetailsAmountcredit sales revenue504000Cash sales revenue129000Total sales revenue633000less: cost of sales (cash)243000Less: cost of sales (credit)54000COGS297000Gross profit633000Operating expenseswages117000less: wages paid for last week2175114825Electricity for first 3 quarters5700Electricity bill for last quarter20257725Rent received112500tax paid on business premises 1 January2400tax paid on business premises 1 April45006900Depreciation on delivery van16320Bad debts1500Total operating expenses259770Total profit373230Balance sheet1
Introduction of Accounting and Finance : Assignment_3
ParticularsDetailsAmountCurrent assetsTrade receivables438000Less: Bad debts1500436500Inventories525000Total current assets961500Fixed assetsCost of Delivery van60000Add: costs of running33600Less: sales12000Total cost of van81600Useful life5Depreciation16320Value of van6528065280Total fixed assets65280Total assets1026780LiabilitiesCurrent liabilitiesTrade payables393000Total current liabilities393000advance rent22500Non-current liabilities58050Total liabilities473550Equity capital180000Net profit373230Total liabilities and equity1026780QUESTION 2A. Calculation of contribution per unit Particulars Figures (in £)Materials5.25Labour2.95Variable overheads1.852
Introduction of Accounting and Finance : Assignment_4

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