Statement of Income, Statement of Financial Position Reports

STATEMENT OF INCOME,
STATEMENT OF FINANCIAL
POSITION REPORTS

Table of Contents
1.0
INTRODUCTION.............................................................................................................................
PART A...........................................................................................................................................1
PART B............................................................................................................................................3
PART C............................................................................................................................................6
A. Net Present Value, Average Rate of Return, Payback Period...............................................6
B. Investment Appraisal Techniques and Its Benefits and Limitations.....................................8
C. Budgets as a tool for strategic planning and their benefits....................................................9
2.0 CONCLUSION........................................................................................................................11
3.0 REFERENCES........................................................................................................................12

1.0 INTRODUCTION
A statement of income is one of the three crucial financial statements used for analysing a
business enterprise's financial performance over a particular accounting duration, with the
opposite key statements being the balance sheet and the statement of cashflows. However, it is
also known as the profit and loss statements or the declaration of revenue and fee, the income
declaration in most cases concentrates employer’s sales and fees at some point of a particular
duration. Hence, the report will highlight the income statement for the year ended 31st December
2018 and the financial position statement of dexter plc (Kieso, Weygandt and Warfield, 2016).
Further, the project will highlight the break-even analyses of philly ltd. and along with
that it will highlight the calculation of payback period, accounting rate of return, and the net
present value of the sankrust ltd. Moreover, the project will frame the different investment
appraisal methods and their advantage and disadvantages which includes payback period, net
present value, accounting rate of return and internal rate of return etc. Eventually, the assignment
will highlight the key advantages and disadvantages of budgets and their types which is inclusive
of operating budget, financial budget and cash flow budget (Cao, Chychyla and Stewart, 2015).

PART A
Income statement for the year ended 31 December 2018
Particulars details amount
Sales revenue on credit 504000
less: cost of sales 243000 261000
sales revenue on cash 129000
less: cost of sales 54000 75000
total gross profit 336000
operating expenses
Less: depreciation on Van 9600
Less: wages 117000
Less: bad debts 1500
Less: rent 112500
Less: Electricity bills 5700
Total operating expenses 279900
Net profit 56100
Balance sheet for the year ended 31 December 2018 for Dexter Plc
Particulars Amount Total
Liabilities
Non-current liabilities
capital 180000
Add: profits 56100
Net capital 236100
Current liability
trade payable 393000
Total liabilities 629100
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