[DOCUMENT] Financial Statements Analysis

The provided financial statement analysis includes an income statement and balance sheet for the period from January to December 2014. The data shows various transactions, such as loans, cash withdrawals, purchases, wages, rent, fees, repairs, and more. The total income is $442783.8, with a total expenditure of $382000.9, resulting in a net profit of $60882.9.

Prepare financial reports
for corporate entities

Table of Contents
INTRODUCTION...........................................................................................................................1
Part A...............................................................................................................................................1
Part B...............................................................................................................................................6
Part C.............................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
APPENDIX....................................................................................................................................15

INTRODUCTION
Financial reporting is the process of producing statements that discloses an organisational
financial status to management, investors and the government. Financial reports of business
entity is used for gathering information about the results of operations, financial position and
cash flow of an organisation (Albu and Albu, 2012). This information is used by readers of
financial statements to make decision regarding allocation of resources in most effective manner.
Financial reports of a business entity reflects financial position of organisation at a given point of
time and corrective actions are taken on time and losses can be minimised. In this project reports
financial reports of Big Ed's Whitegoods is prepared. All the financial data's are recorded
correctly and fair results are provided in this financial reporting.
Part A
Sales book: In this sales made by business entity in a particular time period is recorded.
This helps to keep record of all the sales made by business organisation and inventory record can
be maintained properly (Owen, 2013).
Sales Book of Big Ed's Whitegoods for October
Date Invoice No. Particulars LF Details Amount ($)
12 Fridges sold @ 1600 each 12*1600 19200
15 Freezers sold @ 800 each 15*800 12000
13 Microwaves sold @ 470 each 13*470 6110
11 Range hoods sold @ 190 each 11*190 2090
6 Ovens sold @ 2100 each 6*2100 12600
16 Cook tops sold @ 560 each 16*560 8960
18 Dishwashers sold @ 990 each 18*990 17820
22 Vacuums sold @ 390 each 22*390 8580
14 Coffee makers sold @ 600 each 14*600 8400
25 Toasters sold @ 99 each 25*99 2475
5 Irons sold @ 156 each 5*156 780
16 Mixers sold @ 89 each 16*89 1424
13 Deep fryers sold @ 99 each 13*99 1287
1

4 Portable A/C's sold @ 350 each 4*350 1400
0 Hair-dryers sold @ 35 each 0*35 0
14 Irons sold @ 45 each 14*45 630
14 Scale Sets sold @ 24 each 14*24 336
13 Kettles sold @ 78 each 13*78 1014
15 Small Bins sold @ 40 each 15*40 600
7 Large Bins sold @60 each 7*60 420
9 Wine coolers sold @ 299 each 9*299 2691
5 Washing Machines sold @ 340
each 5*340 1700
4 Dryers sold @ 330 each 4*330 1320
Total 111837
Sales Book of Big Ed's Whitegoods for November
Date Invoice No. Particulars LF Details Amount ($)
8 Fridges sold @ 1600 each 8*1600 12800
10 Freezers sold @ 800 each 10*800 8000
6 Microwaves sold @ 470 each 6*470 2820
15 Range hoods sold @ 190 each 15*190 2850
5 Ovens sold @ 2100 each 5*2100 10500
18 Cook tops sold @ 560 each 18*560 10080
18 Dishwashers sold @ 990 each 18*990 17820
26 Vacuums sold @ 390 each 26*390 10140
18 Coffee makers sold @ 600 each 18*600 10800
13 Toasters sold @ 99 each 13*99 1287
7 Irons sold @ 156 each 7*156 1092
11 Mixers sold @ 89 each 11*89 979
9 Deep fryers sold @ 99 each 9*99 891
6 Portable A/C's sold @ 350 each 6*350 2100
2 Hair-dryers sold @ 35 each 2*35 70
16 Irons sold @ 45 each 16*45 720
2

18 Scale Sets sold @ 24 each 18*24 432
14 Kettles sold @ 78 each 14*78 1092
14 Small Bins sold @ 40 each 14*40 560
17 Large Bins sold @60 each 17*60 1020
10 Wine coolers sold @ 299 each 10*299 2990
10 Washing Machines sold @ 340
each 10*340 3400
4 Dryers sold @ 330 each 4*330 1320
Total 103763
Sales Book of Big Ed's Whitegoods for December
Date Invoice No. Particulars LF Details Amount ($)
16 Fridges sold @ 1600 each 16*1600 25600
15 Freezers sold @ 800 each 15*800 12000
6 Microwaves sold @ 470 each 6*470 2820
8 Range hoods sold @ 190 each 8*190 1520
8 Ovens sold @ 2100 each 8*2100 16800
14 Cook tops sold @ 560 each 14*560 7840
14 Dishwashers sold @ 990 each 14*990 13860
29 Vacuums sold @ 390 each 29*390 11310
26 Coffee makers sold @ 600 each 26*600 15600
19 Toasters sold @ 99 each 19*99 1881
9 Irons sold @ 156 each 9*156 1404
16 Mixers sold @ 89 each 16*89 1424
13 Deep fryers sold @ 99 each 13*99 1287
8 Portable A/C's sold @ 350 each 8*350 2800
1 Hair-dryers sold @ 35 each 1*35 35
21 Irons sold @ 45 each 21*45 945
22 Scale Sets sold @ 24 each 22*24 528
3

19 Kettles sold @ 78 each 19*78 1482
31 Small Bins sold @ 40 each 31*40 1240
16 Large Bins sold @60 each 16*60 960
16 Wine coolers sold @ 299 each 16*299 4784
15 Washing Machines sold @ 340
each 15*340 5100
8 Dryers sold @ 330 each 8*330 2640
Total 133860
Purchase book: Transactions related to purchase made by business organisation related
to particular time period is recorded in this book. Amount of creditors are calculated with
inventory purchased in credit and recorded in this book (Stent and Dowler, 2015).
Purchase book of Big Ed's Whitegoods for October
Date Invoice No. Particulars LF Details Amount ($)
10 fridges purchased @ 800 each on
credit from JRL 10*800 8000
15 Freezers purchased @ 250 each
on credit from JRL 15*250 3750
10 Microwaves purchased @ 150
each 10*150 1500
10 Range hoods purchased @ 80
each 10*80 800
5 Ovens purchased @ 900 each 5*900 4500
15 Cook tops purchased @ 200 each 15*200 3000
15 Dishwashers purchased @450
each 15*450 6750
20 Vacuums purchased @ 130 each
on credit from Innovative Tech 20*130 2600
10 Coffee makers purchased @ 250
each on credit from Innovative Tech 10*250 2500
4

20 Toasters purchased @ 35 each 20*35 700
5 Irons purchased @78 each 5*78 390
15 Mixers purchased @45 each 15*45 675
10 Deep fryers purchased @ 45 each 10*45 450
0 Portable A/C's purchased @180
each 0*180 0
0 Hair-dryers purchased @ 9 each 0*9 0
10 Irons purchased @19 each 10*19 190
10 Scale Sets purchased @12 each 10*12 120
10 Kettles purchased @ 34 each 10*34 340
10 Small Bins purchased @13 each 10*13 130
5 Large Bins sold @22 each 5*22 110
15 Wine coolers purchased @ 130
each 15*130 1950
5 Washing Machines purchased @
220 each on credit from Rowlings 5*220 1100
5 Dryers purchased @210 each 5*210 1050
Total 40605
Purchase book of Big Ed's Whitegoods for November
Date Invoice No. Particulars LF Details Amount ($)
5 fridges purchased @ 800 each on
credit from JRL 5*800 4000
5 Freezers purchased @ 250 each on
credit from JRL 5*250 1250
5 Microwaves purchased @ 150
each 5*150 750
10 Range hoods purchased @ 80
each 10*80 800
5 Ovens purchased @ 900 each 5*900 4500
5

10 Cook tops purchased @ 200 each 10*200 2000
10 Dishwashers purchased @450
each 10*450 4500
20 Vacuums purchased @ 130 each
on credit from Innovative Tech 20*130 2600
10 Coffee makers purchased @ 250
each on credit from Innovative Tech 10*250 2500
10 Toasters purchased @ 35 each 10*35 350
5 Irons purchased @78 each 5*78 390
10 Mixers purchased @45 each 10*45 450
5 Deep fryers purchased @ 45 each 5*45 225
5 Portable A/C's purchased @180
each 5*180 900
0 Hair-dryers purchased @ 9 each 0*9 0
15 Irons purchased @19 each 15*19 285
15 Scale Sets purchased @12 each 15*12 180
10 Kettles purchased @ 34 each 10*34 340
10 Small Bins purchased @13 each 10*13 130
5 Large Bins sold @22 each 5*22 110
5 Wine coolers purchased @ 130
each 5*130 650
0 Washing Machines purchased @
220 each on credit from Rowlings 0*220 0
0 Dryers purchased @210 each 0*210 0
Total 26910
Purchase book of Big Ed's Whitegoods for December
Date Invoice No. Particulars LF Details Amount ($)
10 fridges purchased @ 800 each on
credit from JRL 10*800 8000
6

10 Freezers purchased @ 250 each
on credit from JRL 10*250 2500
10 Microwaves purchased @ 150
each 10*150 1500
15 Range hoods purchased @ 80
each 15*80 1200
10 Ovens purchased @ 900 each 10*900 9000
15 Cook tops purchased @ 200 each 15*200 3000
15 Dishwashers purchased @450
each 15*450 6750
30 Vacuums purchased @ 130 each
on credit from Innovative Tech 30*130 3900
25 Coffee makers purchased @ 250
each on credit from Innovative Tech 25*250 6250
20 Toasters purchased @ 35 each 20*35 700
10 Irons purchased @78 each 10*78 780
18 Mixers purchased @45 each 18*45 810
15 Deep fryers purchased @ 45
each 15*45 675
10 Portable A/C's purchased @180
each 10*180 1800
5 Hair-dryers purchased @ 9 each 5*9 45
25 Irons purchased @19 each 25*19 475
25 Scale Sets purchased @12 each 25*12 300
20 Kettles purchased @ 34 each 20*34 680
30 Small Bins purchased @13 each 30*13 390
15 Large Bins sold @22 each 15*22 330
15 Wine coolers purchased @ 130
each 15*130 1950
10 Washing Machines purchased @
220 each on credit from Rowlings 10*220 2200
7

10 Dryers purchased @210 each 10*210 2100
Total 55335
Part B
Creditors account: When inventory in business are taken without immediate payments
then it leads to creation of creditors. Creditors accounts are prepared in business to calculate
amount that needs to be paid to creditors at the end of accounting period (Puspitaningrum and
Atmini, 2012).
JPR Holdings
Date Particulars Amount($) Date Particulars
Amoun
t($)
To Bank A/C 5000 By Balance b/d 22626
To Bank A/C 5000 By Purchase A/C 27500
To Bank A/C 10000
To Balance c/d 30126
Total 50126 Total 50126
Innovating Technology LTD
Date Particulars Amount($) Date Particulars Amount($)
To Bank A/C 2000 By Balance b/d 3653
To Bank A/C 2000 By Purchase A/C 20350
To Bank A/C 4000
To Balance c/d 16003
Total 24003 Total 24003
LMS MARKETING
8

Date Particulars Amount($) Date Particulars Amount($)
To Bank A/C 1200 By Balance b/d 1200
Total 1200 Total 1200
Rowlings and Sons
Date Particulars Amount($) Date Particulars Amount($)
To Bank A/C 5000 By Balance b/d 35622
To Bank A/C 5000 By Purchase A/C 3300
To Bank A/C 8600
To Balance c/d 20322
Total 38922 Total 38922
Debtors:
P.L. Farthings a/c
Date Particular Amount Date Particular Amount
2014
October
2014
October
To Balance b/d 1323 By Balance c/d 1623
To Delivery services 300
1623 1623
2014
November
2014
November
To Balance b/d 1623 By Balance c/d 1823
To Delivery Services 200
1823 1823
2014
December
2014
December
9

To Balance b/d 1823 By Balance c/d 2788
To Delivery Services 965
2788 2788
J Smyth & Co a/c
Date Particular Amount Date Particular Amount
2014
October
2014
October
To Balance b/d 800 By Balance c/d 950
To Delivery services 150
950 950
2014
November
2014
November
To Balance b/d 950 By Balance c/d 1300
To Delivery Services 350
1300 1300
2014
December
2014
December
To Balance b/d 1300 By Balance c/d 1300
1300 1300
L.L Incorporated a/c
Date Particular Amount Date Particular Amount
2014
October
2014
October
To Balance b/d 356 By Balance c/d 718
10

To Delivery services 362
718 718
2014
November
2014
November
To Balance b/d 718 By Balance c/d 1180
To Delivery Services 462
1180 1180
2014
December
2014
December
To Balance b/d 1180 By Balance c/d
To Delivery Services 332
1512 1512
National Appliances Direct a/c
Date Particular Amount Date Particular Amount
2014
October
2014
October
To balance b/d 4233 By Balance c/d 4833
To Delivery services 600
4833 4833
2014
November
2014
November
To Balance b/d 4833 By Balance c/d 5323
To Delivery Services 490
5323 5323
11

2014
December
2014
December
To Balance b/d 5323 By Balance c/d 6018
To Delivery Services 695
6018 6018
TTNT a/c
Date Particular Amount Date Particular Amount
2014
November
2014
November
To Delivery Services 336 By Balance c/d 336
336 336
2014
December
2014
December
To Balance b/d 336 By Balance c/d 336
336 336
Inventory a/c
Date Particular Amount Date Particular Amount
2014
October
2014
October
To opening stock 117303 By sales 111837
To purchase 40605 By Balance c/d 46071
157908 157908
2014
November
2014
November
12

To Balance b/d 46071 By Sales 103763
To purchase 26910 By Balance c/d
2014
December
2014
December
To Balance b/d By Sales 133860
To purchase 55335 By Balance c/d 78525
Note: For Cash Account: Refer Appendix
Part C
Profit and loss a/c
Particular Amount Particular Amount
To Purchase 122850 By Sales a/c 349460
To Phone Service / Calls 195 By Closing Inventory 78525
To Electricity 397.5
To Gas 150
To Water 137.49
To Insurance 324.99
To Payroll 116250
To Cleaning 212.49
To Finance Costs 412.5
To Depreciation 14883
To Advertising 140.01
To Rent 6249.99
13

To Petrol 140.01
To Accountants Fees 92.49
To Maintenance 351.24
To Bank Fees 52.5
To Office Supplies 150
To Net Profit 164995.35
349460 349460
GST Summary Report
Supplies per Financial Report AUS$ Acquisitions per Financial
Report AUS$
Sales 3,17,121 Purchases 1,22,850
Professional Fees - Other Cost of Goods Sold -
Contract Income - Direct Expenses 5,31,390
FBT Contributions - Overhead Expenses -
Sale of Fixed Assets - Capital Acquisitions -
Prepayments -
No Adjustment for Debtors Required - No Adjustment for Creditors
Required -
Sub-Total 3,17,121 Sub-total 6,54,240
No Adjustment for Debtors Required - No Adjustment for Creditors
Required -
Total Supplies for GST Purposes 3,17,121 Total Acquisitions for GST
Purposes 6,54,240
Less Supplies Not Subject to GST: Less Acquisitions Not Subject to
14

GST:
GST- free sales - Bank Charges 245
Input-taxed sales - Borrowing Costs 1,925
Export sales - Depreciation 14,883
Salaries & Wages 5,42,500
Total Supplies Not Subject to GST 0 Total Acquisitions Not Subject to
GST 5,59,553
Total Supplies Subject to GST 3,17,121 Total Acquisitions Subject to
GST 94,687
GST Collected Above @ 10% 31,712 GST Paid Above @ 10% 9,469
GST Collected per BAS 0 GST Paid per BAS 0
Amount of GST carried forward= 31712-9469 = 22243
Balance Sheet as on 31st Dec
Liabilities Amount Assets Amount
Shareholders Fund Fixed Assets
Capital - Computer 16400.00
Add: Net Profit 164995.35 164995.35 Dep@50% 2050.00 14350.00
Delivery Van 26000.00
Current Liabilities: Dep @ 40% 10400.00 15600.00
Creditors Phones 2300.00
JRL Holdings 30126.00 Dep @ 66.67% 1533.41 766.59
Innovating Technology
Ltd 16003.00 Office Equipment 4500.00
Rowlings & Sons 35622.00 81751.00 Dep @ 20% 900.00 3600.00
Provisions 221791.03 Current Assets
Debtors:
P.L. Farthings 2788.00
J Smyth & Co 1300.00
15

L.L Incorporated 1512.00
National Appliances
Direct 6018.00
TTNT 336.00 11954.00
Inventory 78525
Cash 343741.79
Total 468537.38 Total 468537.38
CONCLUSION
From the above project report it has been concluded that financial statements are the most
important evidences that shows financial results of business entity. Businesses are started with a
motive to earn more and more profits in long run and to ascertain the amount earned by business
organisation financial statements are required. All the decisions and budgets that are prepared for
future are based on financial information. Importance of financial statements are increasing for
businesses and related stakeholders. As they helps in comparing two organisations working in
the same industry and helps in implementing various business policies.
16

REFERENCES
Books and Journals
Albu, N. and Albu, C. N., 2012. International Financial Reporting Standards in an emerging
economy: lessons from Romania. Australian accounting review. 22(4). pp.341-352.
Owen, G., 2013. Integrated reporting: A review of developments and their implications for the
accounting curriculum. Accounting Education. 22(4). pp.340-356.
Puspitaningrum, D. and Atmini, S., 2012. Corporate governance mechanism and the level of
internet financial reporting: Evidence from Indonesian companies. Procedia Economics
and Finance. 2. pp.157-166.
Stent, W. and Dowler, T., 2015. Early assessments of the gap between integrated reporting and
current corporate reporting. Meditari Accountancy Research. 23(1). pp.92-117.
17

APPENDIX
Cash a/c
Date Particular Amount Date Particular Amount
01/10/14 To Balance b/d 245000 03/10/14 By Loan Cost 137.5
09/10/14 To Cash 6000 04/10/14 By Telstra invoice
3365432
65
17/10/14 To Cash 25837 05/10/14 By HLH Electricity 132.5
27/10/14 To Cash 35000 06/10/14 By Ultimate Gas 50
30/10/14 To Cash 45000 08/10/14 By Wages 19375
08/10/14 By Rent 2083.33
13/10/14 By JRL Holdings 5000
15/10/14 By Innovative
Technology
2000
22/10/14 By Cash 500
22/10/14 By Wages 19375
22/10/14 By Purchase 11451 12620
23/10/14 By Shell 46.67
23/10/14 By Purchase 11452 8630
25/10/14 By Cash 500
25/10/14 By Purchase 11453 1405
25/10/14 By LMS marketing 46.67
25/10/14 By Cash 50
26/10/14 By Water 45.83
26/10/14 By Insurance Direct
Debit
108.33
18