Professional Documents
Culture Documents
Hint: Only those businesses that have goods (products) to sell will use the calculation of cost of
goods sold
Joes Motorbike Tyres
Profit and Loss Statement
For the Period ended Year One
Income
Sales 52000
Total Sales 52000
Cost of Goods Sold
Opening Stock $ -
Stock Purchases 34320
Less Closing Stock 3120
Total Cost of Goods Sold(COGS) 31200
Gross Profit 20800
Expenses
Advertising 500
Bank Service Charges 120
Insurance 500
Payroll 13000
Professional Fees (Legal, Accounti 200
Utilities & Telephone 800
Other: Computer Software 480
Expenses total 15600
Net Profit before Tax 5200
Towards the end of the year, Joe manages to purchase 100 more tyres on credit from his sup
order in the new year. This leaves him with $3,120 of stock on hand at the end of the year.
Joes Cost of Goods Calculation
Opening Stock Nil
Total Year to Date Net Profit / (Loss) $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63
Instructions
Give careful thought to the headings.
Expand the sales income and expenses area if your business has distinct categories
(e.g. a restaurant may have food sales and beverage sales listed separately and cost of sales for each also separated).
Profit & Loss Statement
Month Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16
Income
Total Sales 1,692,095 0 0 0 0 0 0 0 0 0 0 0
Less Total Disc/Comm 3,705 0 0 0 0 0 0 0 0 0 0 0
Total Net Income 1,688,390 0 0 0 0 0 0 0 0 0 0 0
Less Total Cost of Gooods Sold 1,153,448 0 0 0 0 0 0 0 0 0 0 0
Gross Profit 534,942 0 0 0 0 0 0 0 0 0 0 0
Expenses
General & Administrative 19,312 0 0 0 0 0 0 0 0 0 0 0
Marketing & Promotional 0 0 0 0 0 0 0 0 0 0 0 0
Operating Expenses 0 0 0 0 0 0 0 0 0 0 0 0
Motor Vehicle Expenses 0 0 0 0 0 0 0 0 0 0 0 0
Website Expenses 0 0 0 0 0 0 0 0 0 0 0 0
Total Employment Expenses 100,086 0 0 0 0 0 0 0 0 0 0 0
Occupancy Costs 0 0 0 0 0 0 0 0 0 0 0 0
Other Expenses 178 0 0 0 0 0 0 0 0 0 0 0
Total Expenses 119,577 0 0 0 0 0 0 0 0 0 0 0
Monthly Net Profit / (Loss) 415,366 0 0 0 0 0 0 0 0 0 0 0
Total Year to Date Net Profit /
(Loss) 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366
Profit and Loss Ratios
Gross Margin
(Gross Profit / Net Income) 0.3168357603 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Net Margin
(Net Profit / Net Income) 0.2460128232 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Mark Up
((Net Income Less Cost of Goods Sold) /
(Cost of Goods Sold)) x 100 0.4637768517 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Break Even
( Expenses/((1-(Cost of Goods Sold/ Net
Income)) 377409.26054 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Example Balance Sheet
Joes Motorbike Tyres
Balance Sheet
As at end of Year One
Current Assets
Cash $5,100
Debtors $18,000
Stock $3,120
Total Current Assets $ 26,220.00
Non-current Assets
Computer $5,500
Store Fit Out $8,100
Office Equipment $15,000
Quick Ratio ( Current Assets less inventory) / (Current Liabilities less bank overdraft) <1 3
Working Capital Funds
(Current Assets Less Current Liabilities) 2,219,611
Statement.
Jun 16 Dec 16
$11,961.84 $0.00
$3,310,978.58 $0.00
$19,770.72 $0.00
$619,480.65 $0.00
$47,408.04 $0.00
$226,932.00 $0.00
$0.00 $0.00
$ 913,591.41 $ -
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$ - $ -
$ 1,223,772.70 $ -
-$ 8,869.65 $ -
$5,451,434.88 $ -
$22,033.58 $0.00
$196,329.26 $0.00
$100,498.19 $0.00
$292,912.92 $0.00
$1.00 $0.00
$67,909.88 $0.00
$227,633.10 $0.00
$ 907,317.93 $ -
$6,358,752.81 $ -
$ 1,547,138.41 $ -
$ 208,429.59 $ -
$ 1,059.90 $ -
$ 76,852.55 $ -
$ 1,096,472.00 $ -
$ 22,597.25 $ -
$ - ###
$ - ###
$ - ###
$2,952,549.70 $ -
$ 197,093.99 $ -
$ - ###
$ 1,447,612.48 $ -
$1,644,706.47 $ -
$4,597,256.17 $ -
$1,761,496.64 $ -
$ 1,000,000.00 $ -
$ 494,036.20 $ -
$ 267,460.44 $ -
$1,761,496.64 $ -
4 #DIV/0! <1
2,498,885 0
0.7229807963 #DIV/0!
$ -
Example cashflow statement
Cash Flow Statement
Cashflows from Operations
Cash receipts from customers
(enter positive amounts) Cash Sales $ -
Cash collected from customers (debtors) $ -
Funding from Creditors
Stock purchased, not yet paid $ -
Cash paid for
(enter negative amounts)Total Expenses $ -
Inventory (stock)purchases $ -
Funding to Debtors
Sales made not yet collected $ -
Net Cash Flow from Operations $ -
Investing Activities
Cash receipts from
(enter positive amounts) Sale of property and equipment $ -
Matured Investments $ -
Cash paid for
(enter negative amounts)Purchase of property and equipment $ -
Purchase of investments $ -
Net Cash Flow from Investing Activities $ -
Financing Activities
Cash receipts from
(enter positive amounts) Increase in short term debt $ -
Increase in long term debt $ -
Increase in equity (proceeds from owners) $ -
Cash paid for
(enter negative amounts)Repayment of loans $ -
Dividends $ -
Net Cash Flow from Financing Activities $ -
Net Increase in Cash $ -
Cash at End of Year $ -
Date and starting cash
For the Year Ending
Cash at Beginning of Year
Financial Ratios Based on the Balance Sheet
Financial statement analysis includes financial ratios. Here are three financial ratios that are based solely on
Four financial ratios relate balance sheet amounts forAccounts ReceivableandInventoryto income stateme
To learn more about the income statement, go to:
Explanation of Income Statement
Quiz for Income Statement
Crossword Puzzle for Income Statement
The next financial ratio involves the relationship between two amounts from the balance sheet: total liabilitie
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ce Sheet
at are based solely on current asset and current liability amounts appearing on a company's balance sheet:
oryto income statement amounts. To illustrate these financial ratios we will use the following income statement inform
ce sheet: total liabilities and total stockholders' equity:
ance sheet:
The
remainde
r of our
explanati
on of
financial
ratios and
financial
statement
analysis
will use
informatio
n from
the
following
income
statement
:
To learn
more
about the
income
statement
, go to:
The percentages shown for Example Corporation can be compared to other companies and to the industry avera
Financial Ratios Based on the Income Stateme
nies and to the industry averages. Industry averages can be obtained from trade associations, bankers, and library referenc
ome Statement
bankers, and library reference desks. If a company competes with a company whose stock is publicly traded, another sourc
publicly traded, another source of information is that company's "Management's Discussion and Analysis of Financial Condi
d Analysis of Financial Condition and Results of Operations" contained in its annual report to the Securities and Exchange C
he Securities and Exchange Commission (SEC). This annual report is the SEC Form 10-K and is usually accessible under th
is usually accessible under the "Investor Relations" tab on the corporation's website.