Statement of profit and loss Statement of Financial Posi4on
Year ending 31 March 2021 (£)
(£) Cost at Deprecia:on Carry
Sales 143,000.00 Fixed Assets 01.04.20 change for yr Amount
Opening Inventory 23,230.00 Buildings 80,000.00 0 80,000
Purchases 97,000.00 Fixtures and FiOngs 20,000.00 2000 18,000.00 10% SL
Closing Inventory -42,000.00 Car 20,000.00 5000 15,000.00 25% RB
Cost of Sales 78,230.00 Non Current Assets 113,000.00
Gross Profit 64,770.00 Current Assets
Stock (Inventory) 42,000.00
Receivables 2870
Less: Cash at bank 419
1
Distribu:on Expenses 16,000.00 Prepayments 450
Insurance 900 45,739.00
Deprecia:on 7,000.00 Less Current Liabili:es
Administa:ve Expenses 1,400.00 Trade Payables 2200
25,300.00 Accurals 3000
5200
Net profit 39,470.00 Net Currents Assets 40,539.00
Gross Profit Margin 45.29% Total Assets Less Current Liabili:es 153,539.00
Less Non Current Liabili:es 0
Eve has done incredibly well on her first year of trading. Net Assets 153,539.00
it is difficult to make a profit in the first year and eve has
made a net profit of £39,470. She took a risk introducing
a lot of her personal capital to the business. For the
future she will want to increase her gross margin, Financed by:
increase sales and keep costs low. Capital Introduced @ 01.04.20
Fixed Assets 120,000.00
Stock (Inventory) 23,230.00
Add Net Profit 39,470.00
2
Less drawings -29,161.00
153,539.00
Quick Ra:o 71.90%
Comments
Question 1
1. tc={141055AC-C406-4D6B-B3E7-F2DB31D6C689}
22 October 2021 at 04:48:55
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Comment:
Eve paid 900 giving 1 year of Insurance for the period 01/10/20-30/09/21
Her Insurance is paid in advance, 6 months is 450 prepaid.
2. tc={8DC38B69-14A8-4B35-A8D6-B5DEB177FF10}
22 October 2021 at 04:48:55
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Comment:
I have assumed eve took a further 26716 of drawings, it is her only source of income so she has lived on more
than the 2400 stated.
