Introduction to Accounting and Finance Assignment (Doc)

Introduction to
Accounting and
Finance.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Part A. Financial Position and Income statement of Gravepals Plc............................................1
Q2) Break even model.....................................................................................................................4
PART C............................................................................................................................................8
a. Calculation of payback period, ARR and NPV.......................................................................8
b. Merit and limitation of investment appraisal techniques........................................................9
C) Key benefits and limitation of budget as a tool for strategies planning. .............................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Accounting is a systematic and comprehensive recording of financial transaction
pertaining to the business. This refers to process of summarizing, analysing and reporting of
transaction to government authorities and tax collection entities. The main of this present report
is to application of theoretical concepts to a range of practical scenarios enabling production of
solutions to business problems (Aggarwal and Goodell, 2014). The financial position and income
statement for Gravepals Plc is being prepared in this report. As contribution, break even point,
margin of safety and profit for the Cornpeace limited is being calculated in this report. Apart
from this, assumption of break even point is also explained in this report. There are different
investment appraisal techniques which is used by companies, is discussed in this report. The
benefit and limitation of using budget as tool for strategic planning is also explained in this
report.
MAIN BODY
Part A. Financial Position and Income statement of Gravepals Plc
Income Statement:
The income statement shows net profit or loss for a year for the company. As this is also
known as profit and loss statement. This includes the indirect expensed of business like rent,
taxes and deprecations etc. The income statement for company is prepared below:
Particular Amount Amount
Sales Credit: 504000
Cash: 129000
633000
Cost of goods sold 297000
Gross Profit 336000
Operating expenses:
Wages 117000
Operating Profits 219000
Other expenses:
1