Comprehensive Analysis of Profit and Loss Statements for Naja Colleges

This report provides a detailed analysis of the profit and loss statements for five campuses of the Naja Group of Colleges, covering the 2015/16 financial year, specifically quarters 3 and 4. The analysis includes a comparison of budgeted versus actual figures for revenue, cost of goods sold, gross profit, and various expenses such as accounting fees, interest expenses, bank charges, depreciation, insurance, store supplies, advertising, cleaning, repairs & maintenance, rent, telephone, electricity, wages & salaries, superannuation, and payroll tax. The report highlights variances in key financial metrics across the campuses, identifying areas where actual performance deviates from the budget. Key findings include variances in sales and gross profit, and also higher-than-budgeted expenses in areas such as store supplies, telephone, and repairs & maintenance. The report also offers recommended solutions for reducing expenses and improving overall financial performance. The report also includes the student's name, university, and student ID. The report concludes with references to support the analysis. The report is a comprehensive financial performance review for Naja Group of Colleges.

Running head: PROFIT AND LOSS STATEMENT ANALYSIS
Profit and Loss Statement Analysis
Name of the Student: Jamal-ud-din
Name of the University:
Student ID: 201404606
Assessment Task no: 4

1
PROFIT AND LOSS STATEMENT ANALYSIS
Table of Contents
Profit and loss Statement of Naja Group of Colleges......................................................................2
Report on the Profit and loss Statement of all Campus...................................................................8
Comparison Among Campuses for 3th Quarter..............................................................................10
Recommended Solutions for reducing the Expenses.....................................................................11
Reference.......................................................................................................................................13

2
PROFIT AND LOSS STATEMENT ANALYSIS
Profit and loss Statement of Naja Group of Colleges
Naja Group of Colleges
Campus 1- North Sydney
Profit and loss Account 2015/16
Quarter 3 Quarter 4
Particulars Budget ($) Actual ($) Difference
(%)
Budget ($) Actual ($) Difference
(%)
Revenue
Sales $
2,10,000.0
0
$
1,98,200.0
0
-6% $
2,20,000.0
0
$
2,09,327.0
0
-5%
- Cost of goods
sold
$
73,500.00
$
69,370.00
-6% $
77,000.00
$
73,264.45
-5%
Gross Profit $
1,36,500.0
0
$
1,28,830.0
0
-6% $
1,43,000.0
0
$
1,36,062.5
5
-5%
Gross Profit % 65% 65% 65% 65%
Expense
- Accounting Fees $
500.00
$
500.00
0% $
500.00
$
500.00
0%
- Interest
Expenses
$
150.00
$
150.00
0% $
148.00
$
148.00
0%
- Bank Charges $
250.00
$
245.00
-2% $
255.00
$
259.00
2%
- Depreciation $
3,500.00
$
3,500.00
0% $
3,500.00
$
3,500.00
0%
- Insurance $
1,800.00
$
1,800.00
0% $
1,800.00
$
1,800.00
0%
- Store Supplies $
550.00
$
590.00
7% $
560.00
$
624.00
11%
-Advertising $
6,250.00
$
6,000.00
-4% $
6,250.00
$
6,750.00
8%
- Cleaning $
250.00
$
255.00
2% $
260.00
$
289.00
11%
- Repairs &
Maintenance
$
750.00
$
600.00
-20% $
775.00
$
900.00
16%
- Rent $
9,000.00
$
9,000.00
0% $
9,000.00
$
9,000.00
0%
- Telephone $
800.00
$
824.00
3% $
875.00
$
927.00
6%
- Electricity $
1,500.00
$
1,700.00
13% $
1,600.00
$
1,750.00
9%
- Wages & $ $ 2% $ $ 8%

3
PROFIT AND LOSS STATEMENT ANALYSIS
Salaries 11,450.00 11,624.00 12,000.00 12,950.00
- Superannuation $
1,087.75
$
1,104.28
2% $
1,140.00
$
1,230.25
8%
- Payroll Tax $
624.03
$
633.51
2% $
654.00
$
705.78
8%
Total Expenses $
38,461.78
$
38,525.79
0% $
39,317.00
$
41,333.03
5%
Net Profit (Before
Tax)
$
98,038.22
$
90,304.21
-8% $
1,03,683.0
0
$
94,729.52
-9%
Income Tax $
29,411.47
$
27,091.26
-8% $
31,104.90
$
28,418.86
-9%
Net Profit $
68,626.75
$
63,212.95
-8% $
72,578.10
$
66,310.66
-9%
Naja Group of Colleges
Campus 2- Norwest Business Park
Profit and loss Account 2015/16
Quarter 3 Quarter 4
Particulars Budget ($) Actual ($) Difference
(%)
Budget ($) Actual ($) Difference
(%)
Revenue
Sales $
3,50,000.0
0
$
3,63,327.0
0
4% $
3,65,000.0
0
$
3,37,643.0
0
-7%
- Cost of goods
sold
$
1,22,500.0
0
$
1,27,164.4
5
4% $
1,27,750.0
0
$
1,18,175.0
5
-7%
Gross Profit $
2,27,500.0
0
$
2,36,162.5
5
4% $
2,37,250.0
0
$
2,19,467.9
5
-7%
Gross Profit % 65% 65% 65% 65%
Expense
- Accounting Fees $
750.00
$
750.00
0% $
750.00
$
750.00
0%
- Interest
Expenses
$
225.00
$
225.00
0% $
240.00
$
231.00
-4%
- Bank Charges $
310.00
$
300.00
-3% $
330.00
$
320.00
-3%
- Depreciation $
4,500.00
$
4,500.00
0% $
4,500.00
$
4,500.00
0%
- Insurance $
1,800.00
$
1,800.00
0% $
1,800.00
$
1,800.00
0%
- Store Supplies $
750.00
$
875.00
17% $
850.00
$
976.00
15%

4
PROFIT AND LOSS STATEMENT ANALYSIS
-Advertising $
6,000.00
$
7,100.00
18% $
7,000.00
$
4,500.00
-36%
- Cleaning $
425.00
$
400.00
-6% $
285.00
$
310.00
9%
- Repairs &
Maintenance
$
900.00
$
850.00
-6% $
800.00
$
1,050.00
31%
- Rent $
11,000.00
$
11,000.00
0% $
11,000.00
$
11,000.00
0%
- Telephone $
950.00
$
978.00
3% $
950.00
$
1,075.00
13%
- Electricity $
1,500.00
$
1,860.00
24% $
1,600.00
$
1,750.00
9%
- Wages &
Salaries
$
13,250.00
$
14,136.00
7% $
13,000.00
$
14,000.00
8%
- Superannuation $
1,258.75
$
1,342.92
7% $
1,235.00
$
1,330.00
8%
- Payroll Tax $
722.13
$
770.41
7% $
708.50
$
763.00
8%
Total Expenses $
44,340.88
$
46,887.33
6% $
45,048.50
$
44,355.00
-2%
Net Profit (Before
Tax)
$
1,83,159.1
2
$
1,89,275.2
2
3% $
1,92,201.5
0
$
1,75,112.9
5
-9%
Income Tax $
54,947.74
$
56,782.57
3% $
57,660.45
$
52,533.89
-9%
Net Profit $
1,28,211.3
8
$
1,32,492.6
5
3% $
1,34,541.0
5
$
1,22,579.0
7
-9%
Naja Group of Colleges
Campus 3- Adelaide Campus
Profit and loss Account 2015/16
Quarter 3 Quarter 4
Particulars Budget ($) Actual ($) Difference
(%)
Budget ($) Actual ($) Difference
(%)
Revenue
Sales $
1,75,000.0
0
$
1,42,540.0
0
-19% $
1,90,000.0
0
$
1,58,211.0
0
-17%
- Cost of goods
sold
$
61,250.00
$
49,889.00
-19% $
66,500.00
$
55,373.85
-17%
Gross Profit $
1,13,750.0
0
$
92,651.00
-19% $
1,23,500.0
0
$
1,02,837.1
5
-17%
Gross Profit % 65% 65% 65% 65%

5
PROFIT AND LOSS STATEMENT ANALYSIS
Expense
- Accounting Fees $
350.00
$
350.00
0% $
350.00
$
350.00
0%
- Interest
Expenses
$
110.00
$
100.00
-9% $
120.00
$
105.00
-13%
- Bank Charges $
180.00
$
155.00
-14% $
200.00
$
195.00
-3%
- Depreciation $
1,500.00
$
1,500.00
0% $
1,500.00
$
100.00
-93%
- Insurance $
1,800.00
$
1,800.00
0% $
1,800.00
$
1,800.00
0%
- Store Supplies $
250.00
$
247.00
-1% $
275.00
$
259.00
-6%
-Advertising $
6,000.00
$
5,500.00
-8% $
6,000.00
$
6,750.00
13%
- Cleaning $
240.00
$
240.00
0% $
250.00
$
250.00
0%
- Repairs &
Maintenance
$
350.00
$
275.00
-21% $
260.00
$
307.00
18%
- Rent $
6,750.00
$
6,750.00
0% $
6,750.00
$
6,750.00
0%
- Telephone $
550.00
$
756.00
37% $
575.00
$
684.00
19%
- Electricity $
1,000.00
$
1,100.00
10% $
1,000.00
$
1,087.00
9%
- Wages &
Salaries
$
7,438.00
$
7,438.00
0% $
7,438.00
$
7,438.00
0%
- Superannuation $
706.61
$
706.61
0% $
706.61
$
706.61
0%
- Payroll Tax $
405.37
$
405.37
0% $
405.37
$
405.37
0%
Total Expenses $
27,629.98
$
27,322.98
-1% $
27,629.98
$
27,186.98
-2%
Net Profit (Before
Tax)
$
86,120.02
$
65,328.02
-24% $
95,870.02
$
75,650.17
-21%
Income Tax $
25,836.01
$
19,598.41
-24% $
28,761.01
$
22,695.05
-21%
Net Profit $
60,284.01
$
45,729.61
-24% $
67,109.01
$
52,955.12
-21%

6
PROFIT AND LOSS STATEMENT ANALYSIS
Naja Group of Colleges
Campus 4- Perth Campus
Profit and loss Account 2015/16
Quarter 3 Quarter 4
Particulars Budget ($) Actual ($) Difference
(%)
Budget ($) Actual ($) Difference
(%)
Revenue
Sales $
4,10,000.0
0
$
3,98,641.0
0
-3% $
4,25,000.0
0
$
4,00,468.0
0
-6%
- Cost of goods
sold
$
1,43,500.0
0
$
1,39,524.3
5
-3% $
1,48,750.0
0
$
1,40,163.8
0
-6%
Gross Profit $
2,66,500.0
0
$
2,59,116.6
5
-3% $
2,76,250.0
0
$
2,60,304.2
0
-6%
Gross Profit % 65% 65% 65% 65%
Expense
- Accounting Fees $
950.00
$
950.00
0% $
950.00
$
950.00
0%
- Interest
Expenses
$
375.00
$
375.00
0% $
380.00
$
380.00
0%
- Bank Charges $
411.00
$
398.00
-3% $
415.00
$
405.00
-2%
- Depreciation $
4,750.00
$
4,750.00
0% $
4,750.00
$
4,750.00
0%
- Insurance $
1,800.00
$
1,800.00
0% $
1,800.00
$
1,800.00
0%
- Store Supplies $
380.00
$
359.00
-6% $
390.00
$
338.00
-13%
-Advertising $
7,500.00
$
7,325.00
-2% $
7,500.00
$
5,480.00
-27%
- Cleaning $
450.00
$
450.00
0% $
450.00
$
450.00
0%
- Repairs &
Maintenance
$
500.00
$
287.00
-43% $
500.00
$
489.00
-2%
- Rent $
14,500.00
$
14,500.00
0% $
14,500.00
$
14,500.00
0%
- Telephone $
950.00
$
1,283.00
35% $
950.00
$
889.00
-6%
- Electricity $
1,300.00
$
1,265.00
-3% $
1,300.00
$
1,280.00
-2%
- Wages &
Salaries
$
14,528.00
$
14,103.00
-3% $
14,528.00
$
14,528.00
0%
- Superannuation $
1,380.16
$
1,339.79
-3% $
1,380.16
$
1,380.16
0%

7
PROFIT AND LOSS STATEMENT ANALYSIS
- Payroll Tax $
791.78
$
768.61
-3% $
791.78
$
791.78
0%
Total Expenses $
50,565.94
$
49,953.40
-1% $
50,584.94
$
48,410.94
-4%
Net Profit (Before
Tax)
$
2,15,934.0
6
$
2,09,163.2
5
-3% $
2,25,665.0
6
$
2,11,893.2
6
-6%
Income Tax $
64,780.22
$
62,748.98
-3% $
67,699.52
$
63,567.98
-6%
Net Profit $
1,51,153.8
4
$
1,46,414.2
8
-3% $
1,57,965.5
4
$
1,48,325.2
8
-6%
Naja Group of Colleges
Campus 5- Canberra Campus
Profit and loss Account 2015/16
Quarter 3 Quarter 4
Particulars Budget ($) Actual ($) Difference
(%)
Budget ($) Actual ($) Difference
(%)
Revenue
Sales $
2,00,500.0
0
$
2,11,542.0
0
6% $
2,15,000.0
0
$
2,22,438.0
0
3%
- Cost of goods
sold
$
70,175.00
$
74,039.00
6% $
75,250.00
$
77,853.30
3%
Gross Profit $
1,30,325.0
0
$
1,37,502.3
0
6% $
1,39,750.0
0
$
1,44,584.7
0
3%
Gross Profit % 65% 65% 65% 65%
Expense
- Accounting Fees $
525.00
$
525.00
0% $
525.00
$
525.00
0%
- Interest
Expenses
$
134.00
$
134.00
0% $
134.00
$
134.00
0%
- Bank Charges $
275.00
$
283.00
3% $
290.00
$
300.00
3%
- Depreciation $
2,100.00
$
2,100.00
0% $
2,100.00
$
2,100.00
0%
- Insurance $
1,800.00
$
1,800.00
0% $
1,800.00
$
1,800.00
0%
- Store Supplies $
280.00
$
261.00
-7% $
290.00
$
287.00
-1%
-Advertising $
5,000.00
$
4,890.00
-2% $
5,000.00
$
5,290.00
6%
- Cleaning $ $ 0% $ $ 5%

8
PROFIT AND LOSS STATEMENT ANALYSIS
250.00 250.00 250.00 263.00
- Repairs &
Maintenance
$
300.00
$
498.00
66% $
300.00
$
512.00
71%
- Rent $
10,000.00
$
10,000.00
0% $
10,000.00
$
10,000.00
0%
- Telephone $
850.00
$
1,090.00
28% $
875.00
$
1,110.00
27%
- Electricity $
800.00
$
1,050.00
31% $
825.00
$
1,089.00
32%
- Wages &
Salaries
$
11,885.00
$
12,875.00
8% $
11,885.00
$
12,564.00
6%
- Superannuation $
1,129.08
$
1,223.13
8% $
1,129.08
$
1,193.58
6%
- Payroll Tax $
647.73
$
701.69
8% $
647.73
$
684.74
6%
Total Expenses $
35,975.81
$
37,680.82
5% $
36,050.81
$
37,852.32
5%
Net Profit (Before
Tax)
$
94,349.19
$
99,821.48
6% $
1,03,699.1
9
$
1,06,732.3
8
3%
Income Tax $
28,304.76
$
29,946.44
6% $
31,109.76
$
32,019.71
3%
Net Profit $
66,044.43
$
69,875.04
6% $
72,589.43
$
74,712.67
3%
Report on the Profit and loss Statement of all Campus
The profit and loss statements of all the five campuses are given above in the charts. The
five campuses of Naja group of colleges are earning a steady rate of profit (Hafsa Orhan Astrom,
2013). As per the statement of profit and loss for North Sydney Campus the company has a sales
figure and the gross profit which is actually earned by the campus is much les than the projected
figure as per the budget and there is a variance level which is greater than 5% in quarter 3.
Moreover there are variances in the general expenses like advertisement, insurance, maintenance
which are either more in quarter 3 and quarter 4. Expenses which are incurred in store supplies
are more than budgeted estimate by 5% and the variance has further widened in Quarter 4.

9
PROFIT AND LOSS STATEMENT ANALYSIS
The profit and loss statement of Norwest Business Park Campus depicts that there are
variances in the figures of sales and profit in the quarter 4. The store supply of the campus also
shows that there are variances in quarter 3 and quarter 4 which is much more than the acceptable
level of 5%.
The profit and loss statement of the Adelaide campus shows that there are variances in
both the quarters in the case of sales and gross profit. Moreover the actual expenses of the
campus is much more than the estimated costs of the company. The telephone expenses of the
company are much higher in both the quarters than the accepted level of variances in case of
telephone expenditure of the campus.
The profit and loss statement of the Perth campus reveals that the company has not meet
with the budget requirement in case of sales in the quarter 4. The expenses as shown in the profit
and loss statement of the company shows that the telephone expenses and repair and
maintenance expenses of the campus is much more in quarter 3 which is much more than the
acceptable level of 5%.
Lastly the profit and loss statement of the Canberra Campus shows that the sales and
gross profit figures are favorable for the campus. However the expenses like repair and
maintenance, electricity and telephone expenses as incurred by the company are much higher
than the budgeted figures (Ballwieser et al., 2012).
Comparison Among Campuses for 3th Quarter
Items North Norwest Adelaide Perth Canberra Comments

10
PROFIT AND LOSS STATEMENT ANALYSIS
Sydney
Campus
Business
Park
Campus
Campus Campus
Sales $ 198200 $ 363327 $ 142540 $ 398641 $ 211542 The best
sales figure
as per the
sales of the
company is
of Perth
campus
due to
increase in
the
admissions
of the
Colleges.
The second
best sales
figure is of
Norwest
Business
Park.

11
PROFIT AND LOSS STATEMENT ANALYSIS
Net Profit $ 63212.95 $
132492.65
$ 45729.61 $
146414.28
$ 69875.04 The best
net profit
figure is of
Perth
campus as
the sales
amount of
the campus
is also high
of the
campus.
Recommended Solutions for reducing the Expenses
Items Solutions
Electricity The management of the colleges must
judiciously use electricity and reduces
wastage which are switching off lights and
fans when not in use, rare use of generators.
Wages and Salaries The wages and salaries of the company can be
reduced by the management by limiting new
recruitments of employees (Year, 2017).
Repair and Maintenance The management of the colleges should
ensure that the expenses of the company are