Prepare trading profit and loss for 6 months ended 30th september 2021 in CONTRIBUTION FORM

the question is

Appendix 2 - Financial projections for six months ended 30 September 2021 Go Online Cloud 9 produce high quality, durable, branded sport shoes for athletes. This is an elite market reliant on high profile sporting event endorsements and branding. Having reviewed the success of companies such as Nilon Go Online proposes to diversity into the general letture wear market with Cloud 9's own version of light weight sport shoes for general leisure use. As this product line will not be elite sport shoes, it will be less expensive to produce but, as it is important not to compromise Cloud 9's quality reputation, it will still be more expensive to produce than competitor products. Direct costs per unit are forecast as... Cost type Per unit Materials 43 per meter (ind of VAT 23%) 2meters Labour: 15 per hour 7 hours Go Online will aim its product at the quality end of the leisure market and the expected selling price of 250[exclusive of VAT) per unit will reflect this 307.50 inclusive of VAT As it also envisages that the product line expanding in the future Go Online has provisionally signed up two well-known online influencers to promote the product and enhance its marloetability for the next six months. These influencers will each be paid 25.000 + VAT @ 23% per month for the promotion campaign Other cost projections to be considered are Fixed costs April May Admin/sales salaries 1,750,000 1.750,000 Light & heat 510,750 510,750 Selling expenses 1.168,500 1.168,500 Advertising 135,300 135,300 Maintenance/repairs 492,000 492,000 Motor expenses 650,375 650,375 Office expenses 215.250 215.250 Depreciation (per depreciation policy Loan interest (per loan agreement) June 1,750,000 510.750 1.168,500 135,300 492,000 650,375 215,250 July 1,750,000 510,750 1.168,500 135.300 492,000 650,375 215,250 Aug 1,750,000 510,750 1,168,500 135,300 492,000 650,375 215.250 Sept Tota 1,750,000 10,500,000 510,750 3,064,50 1,168,500 7,011,00 135,300 511,80 492,000 2,952,00 650,375 3,902,25 215.250 1,291,50 Note: The following cost projections have been started inclusive of VAT as follows: VAT 00 23% VAT 00 13.5% Selling expenses Light & heat Advertising Petrol Maintenance & repairs Motor expenses (note: 1,872,750 relates to petrol costs) Office expenses In order for this line to be considered successful, it must produce a profit of 12,000,000 by the end of September 2021. No other product will be produced or sold during thin period, Calculate Sales using this target profit The sales volume required to meet the profit target will be achieved incrementally as follows: Month Apr 10% May 10% Jun 10% Jul 10% Aug 20% Sept 40% (For example Apr sales will be 10% of sales) Expected sales mix per month is expected to be 70% directly to the public via on-line cash sales in Cloud 9's existing on-line store and 30% credit sales on 30 day credit to retail outlets. It is expected that 50% of credit sales receipts will be received in the month following the sale with the remaining 50% received the following month. Inventory on hand @31st March 2021 cannot be used in the new product line. Material for the new production line will be bought in at the start of each month in the required amount to meet that month's sales. No inventory of material will be held. All material will be purchased on 30 day credit and paid for in the month following purchase. All operating expenses will be paid in the month incurred. Endorsement fees will accrue over the six months and be paid 50% payable June and the remainder in September No new investment in machinery or equipment is required for the next 6 months. You have ascertained the following information to assist with your assessment: Cloud 9 is registered for VAT and charges 23% VAT on its sales. VAT returns are submitted on-line following the end of each (calendar) two monthly period and payment is made by the 23 of the relevant month. Ignore taxation other than VAT. A loan of 69,000,000 was taken out with Irish Bank plc on 1 Apr 2015 and is repayable in full on 14 Apr 2025. The interest rate on the loan is 10% per annum, payable quarterly on 1 January, 14 April, 19 July and 1 Oct each year. All Cloud 9's sales and purchases are on 30-day credit terms. All other expenses are paid immediately on receipt of invoice. Cloud 9 depreciates it's property, plant & equipment on a straight-line basis as follows: Buildings 40 years o Machinery Delivery vans 5 years Fixtures & fittings 10 years Office furniture & equipment 10 years The following appendices are included: Appendix 1: Trial balance extracted from Cloud 9's records m 31st March 2021. Appendix 2: Details of Go Online's new manufacturing line and financial projections for the six months from 1 April 2021 to 30th September 2021 Appendix 3: Abridged financial statements for two previous years to 31* March 2020 and 2019. 20 years Please note that whilst your report package is to include specified statements and reports, it is necessary to include all relevant data and conclusions into the financial assessment to ensure that the full economic impact is considered. FIO 6 7 8 You have ascertained the following information to assist with your assessment: Cloud 9 is registered for VAT and charges 23% VAT on its sales. VAT returns are submitted on-line following the end of each (calendar) two monthly period and payment is made by the 23 of the relevant month. ignore taxation other than VAT. A loan of 69,000,000 was taken out with Irish Bank plc on 1 Apr 2015 and is repayable in full om 14 Apr 2025. The interest rate on the loan is 10% per annum, payable quarterly on 1 January, 14 April, 1 July and 14 Oct each year. All Cloud 9's sales and purchases are on 30-day credit terms. All other expenses are paid immediately on receipt of involce. Cloud 9 depreciates it's property, plant & equipment on a straight-line basis as follows: Buildings 40 years Machinery 20 years O Delivery vans 5 years Fixtures & fittings 10 years o office furniture & equipment 10 years The following appendices are included: o Appendix 1: Trial balance extracted from Cloud 9's records @31st March 2021. Appendix 2: Details of Go Online's new manufacturing line and financial projections for the six months from 1 April 2021 to 30th September 2021 o Appendix 3: Abridged financial statements for two previous years to 314 March 2020 and 2019. O Please note that whilst your report package is to include specified statements and reports, it is necessary to include all relevant data and conclusions into the financial assessment to ensure that the full economic impact is considered. 5 sprendix 1 -Trial Balance 31st March 2021 Trial Balance as at 31st March 2021 6000 E 6000 50,000 206,655 69,000 D 100,000 25,000 85,000 12.750 18,500 7,400 14,000 4,200 13,500 5,400 Share capital Retained earnings 314 March 2020 Loan Building (cost) Building accumulated depreciation 31st Mar 2020 Machinery (cost) Machinery accumulated depreciation 31st Mar 2020 Delivery vans (cost) Delivery vans accumulated depreciation 31st Mar 2020 Fixtures & fittings (cost) Fixtures & fittings accumulated depreciation 31st Mar 2020 office furniture & equipment (cost) office furniture & equipment accumulated depreciation 31st Mar 2020 Inventory 1 April 2020 Trade receivables Bank overdraft Trade payables VAT payable Sales revenue Purchases Wages and salaries Light and heat Selling expenses Advertising Client entertainment Legal and professional fees Maintenance and repairs Motor expenses Office expenses Interest expense 147,500 87,300 15,950 45,700 6,220 370,000 248,750 62,500 7,250 6,500 3,000 2,750 1,500 4,800 6,500 3.750 5,175 818,275 818,275 On 31st March 2021 the following expenses had not been accounted for. Cloud 9 plans to pay the outstanding amounts in April 2021. Wiges-overtime for March 2021 3,200,000 Petrol for delivery vans (inclusive of VAT 13.5%) 150,000 Legal fees (inclusive of VAT 23%) 1,230,000 Inventory on hand 31st March 2021 is valued at 171,250,000 Amounts due from trade receivables at 31st March 2021 are expected to be received 50% in April and remainder in May. Cash budget Amounts due to trade payables at 31st March 2021 are expected to be paid in full in April Cash Beldget Ho Appendix 2 - Financial projections for six months ended 30 September 2021 Go Online Cloud 9 produce high quality durable, branded sport shoes for athletes. This is an elite market reliant en high profile sporting event endorsements and branding. Having reviewed the success of companies such as Nike, Go Online proposes to diversity into the generat lesure wear market with Cloud Ts own version of light weight sport shoes for general leisure use. As this product line will not be elite sport shoes it will be less expensive to produce but, as it is important not to compromise Cloud's quality reputation, it will still be more expensive to produce than competitor products. Direct costs per unit are forecast as... Per unit Materials 43 per meter (incl of VAT 23%) 2meters Labour 15 per hour 7 hours Cost type cask forecast (Inc VAT) Go Online will aim its product at the quality end of the leisure market and the expected selling price of 250 (exclusive of VAT) per unit will reflect this 307.50 inclusive of VAT FoRcast (no VAT) As it also envisages that the product line expanding in the future Go Online has provisionally signed up two well-known online influencers' to promote the product and enhance its marketability for the next six months. These influencers will each be paid 25,000 + VAT 23% per month for the promotion campaign Other cost projections to be considered are: Fixed costs April May Admin/sales salaries 1,750,000 1,750,000 Light & heat 510,750 510,750 Selling expenses 1.168,500 1.168,500 Advertising 135,300 135,300 Maintenance/repairs 492,000 492,000 Motor expenses 650,375 650,375 215.250 215,250 Depreciation (per depreciation policy) Loan interest (per loan agreement) June 1,750,000 510,750 1.168,500 135,300 492,000 650,375 215,250 July 1,750,000 510,750 1,168,500 135,300 492,000 650,375 215.250 Aug 1.750,000 510,750 1.168,500 135,300 492,000 650375 215,250 Sept Total 1,750,000 10,500,000 510,750 3,064,500 1.168,500 7,011,000 135,300 811,800 492,000 2,952,000 650,375 3,902,250 215,250 1,291,500 Office expenses Note: The following cost projections have been stated inclusive of VAT as follows: VAT v 23 VAT 613 59% Selling expenses Light & heat Advertising Petrol Maintenance & repairs Motor expenses (note: 1872,750 relates to petrol costs) Office expenses In order for this line to be considered successful, it must produce a profit of 12,000,000 by the end of September 2021. No other product will be produced or sold during this period. Calculate Sales using this tangot profit ACAP r cacaulate 2008 Sales FC + Target profit VAT excluded Contribution pu The sales volume required to meet the profit target will be achieved incrementally as follows: Month Apr 10% May 10% Jun 1096 Jul 10% Aug 20% Sept 40% (For example Apr sales will be 10% of sales) Expected sales mix per month is expected to be 70% directly to the public via on-line cash sales in Cloud 9's existing on-line store and 30% credit sales on 30 day credit to retail outlets. It is expected that 50% of credit sales receipts will be received in the month following the sale with the remaining 50% received the following month. Inventory on hand @ 31st March 2021 cannot be used in the new product line. Material for the new production line will be bought in at the start of each month in the required amount to meet that month's sales. No inventory of material will be held. All material will be purchased on 30 day credit and paid for in the month following purchase. All operating expenses will be paid in the month incurred. Endorsement fees will accrue over the six months and be paid 50% payable June and the remainder in September. No new investment in machinery or equipment is required for the next 6 months. Your report package must include the following: 1. Trading, profit and loss account and balance sheet, 31st March 2021 (20 m) 2. Forecast trading profit and loss for the six months ended 30th September 2021, in contribution form. (20 m) 3. Cash forecast for the six months ended 30th September 2021. (20 m) Appendix 2 - Financial projections for six months ended 30 September 2021 Go Online Cloud 9 produce high quality, durable, branded sport shoes for athletes. This is an elite market reliant on high profile sporting event endorsements and branding. Having reviewed the success of companies such as Nilon Go Online proposes to diversity into the general letture wear market with Cloud 9's own version of light weight sport shoes for general leisure use. As this product line will not be elite sport shoes, it will be less expensive to produce but, as it is important not to compromise Cloud 9's quality reputation, it will still be more expensive to produce than competitor products. Direct costs per unit are forecast as... Cost type Per unit Materials 43 per meter (ind of VAT 23%) 2meters Labour: 15 per hour 7 hours Go Online will aim its product at the quality end of the leisure market and the expected selling price of 250[exclusive of VAT) per unit will reflect this 307.50 inclusive of VAT As it also envisages that the product line expanding in the future Go Online has provisionally signed up two well-known online influencers to promote the product and enhance its marloetability for the next six months. These influencers will each be paid 25.000 + VAT @ 23% per month for the promotion campaign Other cost projections to be considered are Fixed costs April May Admin/sales salaries 1,750,000 1.750,000 Light & heat 510,750 510,750 Selling expenses 1.168,500 1.168,500 Advertising 135,300 135,300 Maintenance/repairs 492,000 492,000 Motor expenses 650,375 650,375 Office expenses 215.250 215.250 Depreciation (per depreciation policy Loan interest (per loan agreement) June 1,750,000 510.750 1.168,500 135,300 492,000 650,375 215,250 July 1,750,000 510,750 1.168,500 135.300 492,000 650,375 215,250 Aug 1,750,000 510,750 1,168,500 135,300 492,000 650,375 215.250 Sept Tota 1,750,000 10,500,000 510,750 3,064,50 1,168,500 7,011,00 135,300 511,80 492,000 2,952,00 650,375 3,902,25 215.250 1,291,50 Note: The following cost projections have been started inclusive of VAT as follows: VAT 00 23% VAT 00 13.5% Selling expenses Light & heat Advertising Petrol Maintenance & repairs Motor expenses (note: 1,872,750 relates to petrol costs) Office expenses In order for this line to be considered successful, it must produce a profit of 12,000,000 by the end of September 2021. No other product will be produced or sold during thin period, Calculate Sales using this target profit The sales volume required to meet the profit target will be achieved incrementally as follows: Month Apr 10% May 10% Jun 10% Jul 10% Aug 20% Sept 40% (For example Apr sales will be 10% of sales) Expected sales mix per month is expected to be 70% directly to the public via on-line cash sales in Cloud 9's existing on-line store and 30% credit sales on 30 day credit to retail outlets. It is expected that 50% of credit sales receipts will be received in the month following the sale with the remaining 50% received the following month. Inventory on hand @31st March 2021 cannot be used in the new product line. Material for the new production line will be bought in at the start of each month in the required amount to meet that month's sales. No inventory of material will be held. All material will be purchased on 30 day credit and paid for in the month following purchase. All operating expenses will be paid in the month incurred. Endorsement fees will accrue over the six months and be paid 50% payable June and the remainder in September No new investment in machinery or equipment is required for the next 6 months. You have ascertained the following information to assist with your assessment: Cloud 9 is registered for VAT and charges 23% VAT on its sales. VAT returns are submitted on-line following the end of each (calendar) two monthly period and payment is made by the 23 of the relevant month. Ignore taxation other than VAT. A loan of 69,000,000 was taken out with Irish Bank plc on 1 Apr 2015 and is repayable in full on 14 Apr 2025. The interest rate on the loan is 10% per annum, payable quarterly on 1 January, 14 April, 19 July and 1 Oct each year. All Cloud 9's sales and purchases are on 30-day credit terms. All other expenses are paid immediately on receipt of invoice. Cloud 9 depreciates it's property, plant & equipment on a straight-line basis as follows: Buildings 40 years o Machinery Delivery vans 5 years Fixtures & fittings 10 years Office furniture & equipment 10 years The following appendices are included: Appendix 1: Trial balance extracted from Cloud 9's records m 31st March 2021. Appendix 2: Details of Go Online's new manufacturing line and financial projections for the six months from 1 April 2021 to 30th September 2021 Appendix 3: Abridged financial statements for two previous years to 31* March 2020 and 2019. 20 years Please note that whilst your report package is to include specified statements and reports, it is necessary to include all relevant data and conclusions into the financial assessment to ensure that the full economic impact is considered. FIO 6 7 8 You have ascertained the following information to assist with your assessment: Cloud 9 is registered for VAT and charges 23% VAT on its sales. VAT returns are submitted on-line following the end of each (calendar) two monthly period and payment is made by the 23 of the relevant month. ignore taxation other than VAT. A loan of 69,000,000 was taken out with Irish Bank plc on 1 Apr 2015 and is repayable in full om 14 Apr 2025. The interest rate on the loan is 10% per annum, payable quarterly on 1 January, 14 April, 1 July and 14 Oct each year. All Cloud 9's sales and purchases are on 30-day credit terms. All other expenses are paid immediately on receipt of involce. Cloud 9 depreciates it's property, plant & equipment on a straight-line basis as follows: Buildings 40 years Machinery 20 years O Delivery vans 5 years Fixtures & fittings 10 years o office furniture & equipment 10 years The following appendices are included: o Appendix 1: Trial balance extracted from Cloud 9's records @31st March 2021. Appendix 2: Details of Go Online's new manufacturing line and financial projections for the six months from 1 April 2021 to 30th September 2021 o Appendix 3: Abridged financial statements for two previous years to 314 March 2020 and 2019. O Please note that whilst your report package is to include specified statements and reports, it is necessary to include all relevant data and conclusions into the financial assessment to ensure that the full economic impact is considered. 5 sprendix 1 -Trial Balance 31st March 2021 Trial Balance as at 31st March 2021 6000 E 6000 50,000 206,655 69,000 D 100,000 25,000 85,000 12.750 18,500 7,400 14,000 4,200 13,500 5,400 Share capital Retained earnings 314 March 2020 Loan Building (cost) Building accumulated depreciation 31st Mar 2020 Machinery (cost) Machinery accumulated depreciation 31st Mar 2020 Delivery vans (cost) Delivery vans accumulated depreciation 31st Mar 2020 Fixtures & fittings (cost) Fixtures & fittings accumulated depreciation 31st Mar 2020 office furniture & equipment (cost) office furniture & equipment accumulated depreciation 31st Mar 2020 Inventory 1 April 2020 Trade receivables Bank overdraft Trade payables VAT payable Sales revenue Purchases Wages and salaries Light and heat Selling expenses Advertising Client entertainment Legal and professional fees Maintenance and repairs Motor expenses Office expenses Interest expense 147,500 87,300 15,950 45,700 6,220 370,000 248,750 62,500 7,250 6,500 3,000 2,750 1,500 4,800 6,500 3.750 5,175 818,275 818,275 On 31st March 2021 the following expenses had not been accounted for. Cloud 9 plans to pay the outstanding amounts in April 2021. Wiges-overtime for March 2021 3,200,000 Petrol for delivery vans (inclusive of VAT 13.5%) 150,000 Legal fees (inclusive of VAT 23%) 1,230,000 Inventory on hand 31st March 2021 is valued at 171,250,000 Amounts due from trade receivables at 31st March 2021 are expected to be received 50% in April and remainder in May. Cash budget Amounts due to trade payables at 31st March 2021 are expected to be paid in full in April Cash Beldget Ho Appendix 2 - Financial projections for six months ended 30 September 2021 Go Online Cloud 9 produce high quality durable, branded sport shoes for athletes. This is an elite market reliant en high profile sporting event endorsements and branding. Having reviewed the success of companies such as Nike, Go Online proposes to diversity into the generat lesure wear market with Cloud Ts own version of light weight sport shoes for general leisure use. As this product line will not be elite sport shoes it will be less expensive to produce but, as it is important not to compromise Cloud's quality reputation, it will still be more expensive to produce than competitor products. Direct costs per unit are forecast as... Per unit Materials 43 per meter (incl of VAT 23%) 2meters Labour 15 per hour 7 hours Cost type cask forecast (Inc VAT) Go Online will aim its product at the quality end of the leisure market and the expected selling price of 250 (exclusive of VAT) per unit will reflect this 307.50 inclusive of VAT FoRcast (no VAT) As it also envisages that the product line expanding in the future Go Online has provisionally signed up two well-known online influencers' to promote the product and enhance its marketability for the next six months. These influencers will each be paid 25,000 + VAT 23% per month for the promotion campaign Other cost projections to be considered are: Fixed costs April May Admin/sales salaries 1,750,000 1,750,000 Light & heat 510,750 510,750 Selling expenses 1.168,500 1.168,500 Advertising 135,300 135,300 Maintenance/repairs 492,000 492,000 Motor expenses 650,375 650,375 215.250 215,250 Depreciation (per depreciation policy) Loan interest (per loan agreement) June 1,750,000 510,750 1.168,500 135,300 492,000 650,375 215,250 July 1,750,000 510,750 1,168,500 135,300 492,000 650,375 215.250 Aug 1.750,000 510,750 1.168,500 135,300 492,000 650375 215,250 Sept Total 1,750,000 10,500,000 510,750 3,064,500 1.168,500 7,011,000 135,300 811,800 492,000 2,952,000 650,375 3,902,250 215,250 1,291,500 Office expenses Note: The following cost projections have been stated inclusive of VAT as follows: VAT v 23 VAT 613 59% Selling expenses Light & heat Advertising Petrol Maintenance & repairs Motor expenses (note: 1872,750 relates to petrol costs) Office expenses In order for this line to be considered successful, it must produce a profit of 12,000,000 by the end of September 2021. No other product will be produced or sold during this period. Calculate Sales using this tangot profit ACAP r cacaulate 2008 Sales FC + Target profit VAT excluded Contribution pu The sales volume required to meet the profit target will be achieved incrementally as follows: Month Apr 10% May 10% Jun 1096 Jul 10% Aug 20% Sept 40% (For example Apr sales will be 10% of sales) Expected sales mix per month is expected to be 70% directly to the public via on-line cash sales in Cloud 9's existing on-line store and 30% credit sales on 30 day credit to retail outlets. It is expected that 50% of credit sales receipts will be received in the month following the sale with the remaining 50% received the following month. Inventory on hand @ 31st March 2021 cannot be used in the new product line. Material for the new production line will be bought in at the start of each month in the required amount to meet that month's sales. No inventory of material will be held. All material will be purchased on 30 day credit and paid for in the month following purchase. All operating expenses will be paid in the month incurred. Endorsement fees will accrue over the six months and be paid 50% payable June and the remainder in September. No new investment in machinery or equipment is required for the next 6 months. Your report package must include the following: 1. Trading, profit and loss account and balance sheet, 31st March 2021 (20 m) 2. Forecast trading profit and loss for the six months ended 30th September 2021, in contribution form. (20 m) 3. Cash forecast for the six months ended 30th September 2021. (20 m)