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Maria Hernandez Financial Overview

Maria Hernandez's business incurred a net profit of $4,600 over a two month period from July to August. Revenues were $47,000 while expenses such as supplies, salaries, rent, utilities and depreciation totaled $42,400. The business had $12,000 cash on hand at the start of the period and $6,600 cash on hand at the end of August. The business also had $30,000 in owner's equity and $20,000 in loans.

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Aimane Beggar
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172 views8 pages

Maria Hernandez Financial Overview

Maria Hernandez's business incurred a net profit of $4,600 over a two month period from July to August. Revenues were $47,000 while expenses such as supplies, salaries, rent, utilities and depreciation totaled $42,400. The business had $12,000 cash on hand at the start of the period and $6,600 cash on hand at the end of August. The business also had $30,000 in owner's equity and $20,000 in loans.

Uploaded by

Aimane Beggar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Maria Hernandez

Templates
Maria Hernandez: Profit & Loss Statement
Loss Period Jul – Aug (2 months) Profit
Stationary $1700 Revenues $47000
Salaries, Utils, Rep. $33000
Rent $6000
Interest $200
Depreciation $1500

Profit (Net Income) _______


$4600 _____
$47000

- Intrest on loans = ($20000*0.06)*2 (Accrued Interest on BS)


- Depreciation ( 2 months ) = $750 x 2 = $1500.

Profit goes to the Retained Earnings account on the Balance Sheet


Stationary Used
Used = Inty begin + Purchases – Inty end
….. = …… + ……. – …..
Income Statement

€ Revenues
Purchases -
C
O Used
G
S =
Gross Profit
Inty
Begin Inty
End

Jan Dec
Inty = Inventory
Maria Hernandez: Balance Sheet
Debit Balance Sheet August 31st. Credit
Cash $12000 Loan $20000
Prepaid Rent $6000 Accounts Payable $5500
Acts. Rec. $7000 Accrued Interest $200
Office Supplies $5100 Owner’s Common Equity $30000
Equipment $11000 Retained Earnings $4600
Depreciation $1500
Net Equipment $38000

Retained Earnings = $4600


Result (Profit) from Profit & Loss Statement (Income Statement)
Maria Hernandez: Cash Account
Debit Cash Account as per August 31st. Credit
Cash Begin $12000 Stationary $900
Customers $40000 Equipment $5500
Rent $6000
Utils, salary, repair $33000
Cash End $6600

$12000
Cash Begin …….
Cash End …….
$6600
Cash Movement …….
$5400
Maria Hernandez: Statement of Cash Flows
Cash Flow from Operations:
Net Income (Profit)
Non-Cash Expense
- Depreciation add-back
Changes in Working Capital
- Supplies ($5100)
- Accounts Receivable ($7000)
- Accounts Payable (– $5500)

Cash Flow to Investments:


Equipment ($38000)

Cash Flow from Financing:


-Accrued Interest (– $200)

Cash Beginning $12000


Cash End $6600
Cash Movement $5400
ROE = Return on Equity

What you get back as Owner of your Investment

*
X 100%

$4600
18.4% = X 100%
($30000 + $20000)/ 2

* PAT = Profit After Tax


Shareholders’s Value: ROE = Net Income / EQUITY
ROE = ROA x FLR

NI NI SALES ASSETS
= x x
EQUITY SALES ASSETS EQUITY

Net Profit Asset Financial


Margin Leverage
Turnover
Ratio

........ ........ ........... ........


.......... ........ ........... ........

...% = ....% x ...... x .......

Shareholders COO CEO CFO


Operations Investing Financing

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