Limited-time offer! Save up to 50% Off | Solutions starting at $6 each  

(pdf) Introduction to Accounting and Finance

Added on - 22 Nov 2020

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 4 of 16 pages
INTRODUCTION TOACCOUNTING ANDFINANCE
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1Income statement for the year ended 2017.............................................................................1Statement of financial position...............................................................................................2PART B............................................................................................................................................2A.) Explaining contribution that each shelf makes towards covering fixed cost if it is sold for£13.........................................................................................................................................2B.) Calculation of break-even point and margin of safety.....................................................3c.) Calculation of the profit....................................................................................................4D.) Analysing good strategy for Clarkenpark Ltd..................................................................5E.) Explaining underpinning assumptions which is attached to break-even model...............6PART C............................................................................................................................................7A.) Calculation of payback period, accounting rate of return and net present value.............7b.) Investment appraisal techniques:....................................................................................10c. Budget as a tool for strategic planning.............................................................................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15
INTRODUCTIONAccounting can be defined as a system with the help of which accountant delivers all thefinancial informations of the company. On the other hand, finance refers to a system which isconcerned with dealing with cost, assets, and liabilities of the company as to enable the companyin having better management of them. The present report provides a brief information aboutvarious fundamental models and techniques of financial accounting and management accountingthat need to be comply by a business. The report provides a detailed explanation of theadvantages and limitations of the various investment appraisal techniques. Further, it alsoprovides key merits and demerits of budgets being a tool of the strategic planning. In addition,the study also shows some calculations relating to the NRR and NPV methods of financialaccounting system.PART AIncome statement for the year ended 2017Income statementParticularsDetailsAmountcash sales revenue129000Credit sales revenue504000Total sales revenue633000less: cost of sales (cash)243000Less: cost of sales (credit)54000COGS297000Total Gross profit633000Operating expensesElectricity for first 3 quarters5700wages117000less: wages paid for last week2175114825Electricity bill for last quarter20257725Rent received112500tax paid on business premises 1 January2400tax paid on business premises 1 April45006900Depreciation on delivery van16320Bad debts1500Total operating expenses259770Total profit3732301
Statement of financial positionParticularsDetailsAmountCurrent 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 equity1026780PART BA.) Explaining contribution that each shelf makes towards covering fixed cost if it is sold for£13ParticularsFigures (in £)Labour2.95Materials5.252
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document