Docstoc

sbv-financial-statements

Document Sample
sbv-financial-statements Powered By Docstoc
					Profit and loss statement

The profit and loss statement is a summary of a business’s income and expenses over a
specific period. It should be prepared at regular intervals (usually monthly and at financial
year end) to show the results of operations for a given period. Profit or loss is calculated in
the following way:




                                                    TIP
      Sales
                                                    Regularly (monthly) produce profit
                                                    and loss information and compare
                                                    against previous month’s activities to
           Less                                     ensure your profit expectations are
                                                    being met.
    Sales Discounts
    Sales Commissions
                                                              HINT
                                                              Only those businesses that
                                                              have goods (products) to                            Expens
          Equals                                              sell will use the calculation
                                                              of cost of goods sold

      Net Sales

           Less

                                                 Opening Stock
   Cost of Goods Sold           Equals
                                                                                 Calculating the cost of
                                                                                 goods sold varies
                                                     Plus                        depending on whether the
           Equals                                                                business is retail, wholesale,
                                                                                 manufacturing, or a service
                                                                                 business. In retailing and
                                              Stock Purchases
     Gross Profit                                                                wholesaling, computing the
                                                                                 cost of goods sold during
                                                                                 the reporting period involves
                                                     Equals                      beginning and ending
           Less                                                                  inventories. This, of course,
                                                                                 includes purchases made
                                           Stock available for sale              during the reporting period.
             Expenses
                                                                                 In manufacturing, it involves
        (Fixed & Variable)                                                       finished-goods inventories,
                                                                                 plus raw materials
                                                       Less                      inventories, goods-in
                                                                                 process inventories, direct
           Equals                                                                labour, and direct factory
                                           Closing Stock                         overhead costs.
                                                                                 In the case of a service
      Net Profit                                                                 business, the revenue is
                                                                                 being derived from the
                                                                                 activities of individuals
                                                                                 rather than the sale of a
                                                                                 product and hence the
product and hence the
calculation of cost of goods
sold is a smaller task due to
the low-level use of
materials required to earn
the income.
                                                                     Joe’s Motorbike Tyres
                                                                   Profit and Loss Statement
                                                                     As at end of Year One

                                  Income

                                                   Sales                                       $52,000
                                                    Total Sales                                $52,000

                                  Cost of Goods Sold
                                                Opening Stock                            $          -
                                                Stock Purchases                                $34,320
                                                Less Closing Stock                              $3,120

                                              Total Cost of Goods Sold(COGS)                   $31,200

                                  Gross Profit                                                 $20,800

                                  Expenses
                                                   Advertising                                   $500
                                                   Bank Service Charges                          $120
                                                   Insurance                                     $500
                                                   Payroll                                     $13,000
                                                   Professional Fees (Legal, Accounting)         $200
                                                   Utilities & Telephone                         $800
                                                   Other: Computer Software                      $480
                                                    Expenses total                             $15,600

Calculating the cost of           Net Profit before Tax                                        $5,200
goods sold varies
depending on whether the
                                  Note; Cost of Goods Sold calculation:
business is retail, wholesale,    Towards the end of the year, Joe manages to purchase 100 more tyres on credit from his
manufacturing, or a service       supplier for an order in the new year. This leaves him with $3,120 of stock on hand at the
business. In retailing and        end of the year.
wholesaling, computing the
                                  Joe’s Cost of Goods Calculation
cost of goods sold during
the reporting period involves     Opening Stock                                     Nil
beginning and ending              Add Stock Purchased during the year          $34,320 (1100 tyres @ 31.20 each)
inventories. This, of course,
includes purchases made           Equals Stock available to sell               $34,320
during the reporting period.
                    it involves   Less Stock on hand at end of year            $ 3,120 (100 tyres @ 31.20 each)
         goods inventories,
plus raw materials                Cost of Goods Sold                          $31,200
inventories, goods-in-            Where a business is a service business, that is, you are selling services not goods or
process inventories, direct       products, then the profit and loss statement will generally not have a cost of goods sold
labour, and direct factory
                                  calculation. In some instances, where labour costs can be directly attributed to sales, then
In the case of a service          you may consider including these costs as a cost of goods (services) sold.
business, the revenue is
being derived from the
activities of individuals
rather than the sale of a
product and hence the
product and hence the
calculation of cost of goods
sold is a smaller task due to
         level use of
materials required to earn
Tyres
atement
r One


                    ( 1,000 tyres @ $ 52
                    each)




                    ( See note below)




chase 100 more tyres on credit from his
him with $3,120 of stock on hand at the


Nil
20 (1100 tyres @ 31.20 each)

20
20 (100 tyres @ 31.20 each)

 00
 , you are selling services not goods or
 enerally not have a cost of goods sold
s can be directly attributed to sales, then
 f goods (services) sold.
Small Business Victoria: Information sheet

▌Profit & Loss Statement
How to use it: 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).


Month                                                                     Jan 10       Feb 10       Mar 10      Apr 10       May 10       Jun 10       Jul 10      Aug 10       Sep 10      Oct 10       Nov 10       Dec 10
Income
              Sales
              Sale of goods/services
              Sundry Income (e.g. Commission earned, frachise fees etc.)
              Etc.
              Total Sales                                     0         0                                   0            0           0            0            0           0            0            0           0         0

              Less Discounts/Commissions
              Sales Discounts given
              Sales Commissions paid
              Total Discounts/ Commissions                                         0           0            0            0           0            0            0           0            0            0           0         0

Total Net Income                                                                   0           0            0            0           0            0            0           0            0            0           0         0



Cost of Sales
         Opening Stock
         Stock Purchased
                                                                                   0            0           0            0            0           0            0            0           0            0            0        0
              Less Closing Stock
              Total Cost of Sales                                                  0           0            0            0           0            0            0           0            0            0           0         0

Gross Profit                                                                       0           0            0            0           0            0            0           0            0            0           0         0

Expenses
General & Administrative
        Bank charges
        Credit card commission
        Consultant fees
        Office Supplies
        License fees
        Business insurance
        Etc.
        Total General & Administrative                                             0           0            0            0           0            0            0           0            0            0           0         0

Marketing & Promotional
        Advertising
        Promotion - General
        Promotion - Other
        Etc.
        Total Marketing & Promotional                                              0           0            0            0           0            0            0           0            0            0           0         0

Operating Expenses
        Newspapers & magazines
        Parking/Taxis/Tolls
        Entertainment/Meals
        Travel/Accomodation
        Laundry/dry cleaning
        Cleaning & cleaning products
        Sundry supplies
        Equipment hire
        Etc.
        Total Operating Expenses                                                   0           0            0            0           0            0            0           0            0            0           0         0

Motor Vehicle Expenses
         Fuel
         Vehicle service costs
         Tyres & other replacement costs
         Insurance
         Registrations
         Total Motor Vehicle Expenses       0   0   0   0   0   0   0   0   0   0   0   0

Website Expenses
       Domain name registration
       Hosting expenses
       etc
       Total Website Expenses               0   0   0   0   0   0   0   0   0   0   0   0

Employment Expenses
Permanent
      Salaries/Wages
      PAYE
      Superannuation
      Other - Employee Benefits
      Recruitment costs
      Total Perm. Employment Expenses       0   0   0   0   0   0   0   0   0   0   0   0

Casual
         Salaries/Wages
         PAYE
         Superannuation
         Other - Employee Benefits
         Recruitment costs
         Total Casual Employment Expenses   0   0   0   0   0   0   0   0   0   0   0   0
         Workcover Insurance
         Total Employment Expenses          0   0   0   0   0   0   0   0   0   0   0   0

Occupancy Costs
       Electricity/Gas
       Telephones
       Property Insurance
       Rates
       Rent
       Repair & maintenance
       Waste removal
       Water
       Etc.
       Total Occupancy Costs                0   0   0   0   0   0   0   0   0   0   0   0

Other Expenses




         Total Other Expenses               0   0   0   0   0   0   0   0   0   0   0   0

Total Expenses                              0   0   0   0   0   0   0   0   0   0   0   0

Net Profit / (Loss)                         0   0   0   0   0   0   0   0   0   0   0   0



Total Monthly Net Profit / (Loss)           0   0   0   0   0   0   0   0   0   0   0   0
Small Business Victoria: Information sheet

▌Profit & Loss Statement
How to use it: 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).


Month                                           Jan 10       Feb 10       Mar 10      Apr 10       May 10      Jun 10       Jul 10      Aug 10       Sep 10      Oct 10       Nov 10     Dec 10
Income
    Total Sales                                          0            0           0            0           0            0           0            0           0            0          0        0

       Less Total Disc/Comm                              0            0           0            0           0            0           0            0           0            0          0        0

Total Net Income                                         0            0           0            0           0            0           0            0           0            0          0        0

Less Total Cost of Gooods Sold                           0            0           0            0           0            0           0            0           0            0          0        0

Gross Profit                                             0            0           0            0           0            0           0            0           0            0          0        0

Expenses
   General & Administrative                              0            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                             0            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                                        0            0           0            0           0            0           0            0           0            0          0        0

Total Expenses                                           0            0           0            0           0            0           0            0           0            0          0        0

Monthly Net Profit / (Loss)                              0            0           0            0           0            0           0            0           0            0          0        0
Total Monthly Net Profit /
(Loss)                                                   0            0           0            0           0            0           0            0           0            0          0        0
    Profit and Loss Ratios
Gross Margin
(Gross Profit / Net Income)               #DIV/0!   #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)                      #DIV/0!   #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               #DIV/0!   #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))     #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!
                          Joe’s 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
Non-current Assets
Computer                            $5,500
Store Fit Out                       $8,100
Office Equipment                   $15,000

                 Total Non-current Assets     $28,600
TOTAL ASSETS                                  $54,820

Current Liabilities

Credit Card                         $5,500
Creditors                           $4,120
                  Total Current Liabilities       $9,620

Non-current Liabilities

              Total Non-current Liabilities

TOTAL LIABILITIES                                 $9,620
NET ASSETS                                                 $45,200

Shareholders’ Equity
Owners’ Funds                                 $40,000
Current Year Profit                            $5,200
TOTAL SHAREHOLDERS’ EQUITY                                 $45,200
Small Business Victoria: Information sheet

▌Balance Sheet
                                                                  This statement shows the financial position of
                                                                       the business "as at " a point in time
Prepare a balance sheet for the start of the business, six months later and then at the end of the first year. Draw
the information from the Profit & Loss Statement and the Cash Flow Statement. A Balance Sheet brings together
the results from the Profit & Loss Statement and the Cash Flow Statement. (Download it from the Financial
Management section of the Business Victoria website at www.business.vic.gov.au.)
How to use it: Fill in the figures below, expanding or reducing the assets, liabilities and shareholders equity areas.

                                                                    Start of
Month                                                               Business            Jun 10            Dec 10
Assets
Current Assets
              Cash on hand
              Debtors
              Prepaid Expenses
                      General
                      Rates
                      Workcover
                      Insurance
                      Etc.
                      Total Prepaid expenses                                     0                  0                    0
              Inventory
                      Bikes
                      Parts
                      Etc.
                      Total Inventory                                            0                  0                    0
              Short term Investments
              Other current assets
Total Current Assets                                                             0                  0                    0

Fixed Assets
              Computer
              Store Fit Out
              Office Equipment
              Leasehold
              Buildings & improvements
              Furniture & Fixtures
              Etc.
Total Fixed Assets                                                               0                  0                    0


Total Assets                                                                     0                  0                    0


Liabilities
Current Liabilities
              Bank Overdraft
              Credit Card Debt
              Creditors
              GST collected
           Superannuation
           PAYG Witholding Payable
           Workcover Insurance Payable
           Current portion of long term debt
           Etc.

Total Current Liabilities                                                 0             0             0

Long Term Liabilities
           Motor Vehicle Loan
           Equipment Finance
           Long term Loans

Total Long Term Liabilities                                               0             0             0


Total Liabilities                                                         0             0             0


Net Assets                                                                0             0             0

Shareholders Funds ( Equity)

           Owners Funds
           Retained Earnings
           Current Year Profit


Total Shareholders Funds (Equity)                                         0             0             0


Balance Sheet Ratios

Current Ratio (Current Assets / Current Liabilities)            #DIV/0!       #DIV/0!       #DIV/0!
Quick Ratio ( Current Assets less inventory) / (Current
Liabilities less bank overdraft)                                #DIV/0!       #DIV/0!       #DIV/0!
Working Capital Funds                                (Current
Assets Less Current Liabilities)                                          0             0             0
Leverage Ratio (Total Liabilities / Total Assets)               #DIV/0!       #DIV/0!       #DIV/0!
Debt to Equity Ratio                                (Total
Liabilities / Total Shareholders Funds)                         #DIV/0!       #DIV/0!       #DIV/0!
                                   Cash Flow Statement
                                                         For the Year Ending
                                                    Cash at Beginning of Year

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                                         -
                       [42]
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    -

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:19
posted:5/19/2012
language:English
pages:17
fanzhongqing fanzhongqing http://
About