FINANCIAL ANALYSIS

Financial Analysis

Financial Analysis

Q. Based on the figures for the first year, produce a budget for the following year and include any omissions from the predicted first year activities and any budget item that would grow the company.

First Quarter Income Statement

 

 

£

£

Sales

 

 

16,000

Cost of goods sold:

 

 

 

 

Opening stock

-

 

 

Add purchases

19,500 19,500

 

Less closing stock

 

800 18,700

Gross Profit

 

 

(2,700)

Expenses:

 

 

 

 

Bank

1,100

 

 

Rent

1,250

 

 

Help

1,820

 

 

Cleaner

468

 

 

Depreciation

 

 

 

Till

29

 

 

Vehicle

232 4,899

NET PROFIT

 

 

(7,599)

 

 

 

 

 

 

 

 

Cash Statement

 

£

£

 

 

 

 

Opening balance

 

 

16,000

 

Add receipts

 

16,000

Cash available

 

 

32,000

Deduct payments

 

 

 

 

Bank

1,100

 

 

Rent

1,250

 

 

Help

1,820

 

 

Cleaner

468

 

 

Stock

19,500

 

 

Till

350

 

 

Vehicle

6,500

 

 

Drawings

3,000 33,988

CASH IN HAND

 

 

(1,988)

First Quarter Balance Sheet

 

 

 

 

Net Book

 

 

 

 

 

Cost Drep.

Value

 

 

 

 

 

£ £ £ £

Fixed assets

 

 

 

 

Capital

 

16,000

 

Till

350 29 321

Reserves

 

 

 

Vehicle

6,500 232 6,268

 

Profit

(7,599)

 

 

6,850 261 6,589

 

 

 

 

 

 

 

 

Less drawings

 

3000

 

 

 

 

 

 

 

(10,599)

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

Current liabilities

 

 

 

Stock

 

800

 

 

Bank overdraft

1,988 800 7,389 7,389

Second Quarter Income Statement

 

 

£

£

Sales

 

 

22,000

Cost of goods sold:

 

 

 

 

Opening stock

800

 

 

Add purchases

18,000 18,800

 

Less closing stock

 

1,500 17,300

Gross Profit

 

 

4,700

Expenses:

 

 

 

 

Bank

1,100

 

 

Rent

1,250

 

 

Help

1,820

 

 

Cleaner

468

 

 

Depreciation

 

 

 

Till

29

 

 

Vehicle

232

 

 

Insurance

375 5,274

NET PROFIT

 

 

(574)

Cash Statement

 

£

£

 

 

 

 

Opening balance

 

 

(1,988)

 

Add receipts

 

22,000

Cash available

 

 

20,012

Deduct payments

 

 

 

 

Bank

1,100

 

 

Rent

1,250

 

 

Help

1,820

 

 

Cleaner

468

 

 

Stock

18,000

 

 

Drawings

3,000

 

 

Insurance

1,500 27,138

CASH IN HAND

 

 

(7,126)

Second Quarter Balance Sheet

 

 

 

 

Net Book

 

 

 

 

 

Cost Drep.

Value

 

 

 

 

 

£ £ £ £

Fixed assets

 

 

 

 

Capital

 

16,000

 

Till

321 29 292

Reserves

 

 

 

Vehicle

6,268 232 6,036

 

Profit b/fwd

(10,599)

 

 

6,589 261 6,328

 

Add this period

(574)

 

 

 

 

 

 

 

(11,173)

 

 

 

 

 

Less drawings

 

3000

 

 

 

 

 

 

 

(14,173)

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

Current liabilities

 

 

 

Stock

 

1,500

 

 

Bank overdraft

7,126

 

Insurance prepaid

 

1,125 2,625 8,953 8,953

Third Quarter Income Statement

 

 

£

£

Sales

 

 

18,000

Cost of goods sold:

 

 

 

 

Opening stock

1,500

 

 

Add purchases

2,500 4,000

 

Less closing stock

 

2,500 1,500

Gross Profit

 

 

16,500

Expenses:

 

 

 

 

Bank

1,100

 

 

Rent

1,250

 

 

Help

1,820

 

 

Cleaner

468

 

 

Depreciation

 

 

 

Till

29

 

 

Vehicle

232

 

 

Insurance

375 5,274

NET PROFIT

 

 

11,226

Cash Statement

 

£

£

 

 

 

 

Opening balance

 

 

(7,126)

 

Add receipts

 

12,600

Cash available

 

 

5,474

Deduct payments

 

 

 

 

Bank

1,100

 

 

Rent

1,250

 

 

Help

1,820

 

 

Cleaner

468

 

 

Drawings

3,000 7,638

CASH IN HAND

 

 

(2,164)

Third Quarter Balance Sheet

 

 

 

 

Net Book

 

 

 

 

 

Cost Drep.

Value

 

 

 

 

 

£ £ £ £

Fixed assets

 

 

 

 

Capital

 

16,000

 

Till

292 29 263

Reserves

 

 

 

Vehicle

6,036 232 5,804

 

Profit b/fwd

(14,173)

 

 

6,328 261 6,067

 

Add this period

11,226 (2,947)

 

 

 

 

 

Less drawings

 

3000

 

 

 

 

 

 

 

(5,947)

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

Current liabilities

 

 

 

Stock

 

2,500

 

 

Bank overdraft

2,164

 

Insurance prepaid

 

750

 

 

Creditor

2,500

 

Debtor

 

5,400 8,650 14,717 14,717

Fourth Quarter Income Statement

 

 

£

£

Sales

 

 

22,000

Cost of goods sold:

 

 

 

 

Opening stock

2,500

 

 

Add purchases

4,000 6,500

 

Less closing stock

 

500 6,000

Gross Profit

 

 

16,000

Expenses:

 

 

 

 

Bank

1,100

 

 

Rent

1,250

 

 

Help

1,820

 

 

Cleaner

468

 

 

Depreciation

 

 

 

Till

29

 

 

Vehicle

232

 

 

Insurance

375 5,274

NET PROFIT

 

 

10,726

Fourth Quarter Balance Sheet

Cash Statement

 

£

£

 

 

 

 

Opening balance

 

 

(2,164)

 

Add receipts

 

15,400

 

Last quarter credit sales

 

5,400

Cash available

 

 

18,636

Deduct payments

 

 

 

 

Bank

1,100

 

 

Rent

1,250

 

 

Help

1,820

 

 

Cleaner

468

 

 

Drawings

3,000

 

 

Payments for credit purchases

2,500 10,138

CASH IN HAND

 

 

8,498

 

 

 

 

Net Book

 

 

 

 

 

Cost Drep.

Value

 

 

 

 

 

£ £ £ £

Fixed assets

 

 

 

 

Capital

 

16,000

 

Till

263 29 234

Reserves

 

 

 

Vehicle

5,804 232 5,572

 

Profit b/fwd

(5,947)

 

 

6,067 261 5,806

 

Add this period

10,726 4,779

 

 

 

 

 

Less drawings

 

3000

 

 

 

 

 

 

 

1,779

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

Current liabilities

 

 

 

Stock

 

500

 

 

Creditor

4,000 ...