Profit & Loss Jul-17 % Aug-171 % Revenue Cost of Sales 27,000 18,000 0.67 9,000 0.33 Gross Profit Depreciation 832 Net Profit (Loss) 8,168 0.30 Balance Sheet Current Assets 35,550 3.56 Bank Stock/Inventory Debtor 16,550 7,000 2.86 12,000 Non Current Assets 13,387 13,500 113 33,781 34,500 719 Furniture and Fittings Opening Balance Accumulate Dpn Motor Vehicle Opening Balance Accumulate Dpn Total Assets 82,718 Current Liabilities 10,000 10,000 44,550 44.550 54,550 1.52 Creditors Non Current Liabilities Liability Total Liabilities Capital P/L 20,000 0.41 8,168 28,168 0.29 2.94 Total Equity Profitability Ratios: Transactions for August (added here for ease of reading -check requirements) A further 11,000 shares of $2 each has been issued Pay half of creditors that are outstanding at the beginning of the month Receive outstanding monies from debtors at the beginning of the month Inventory costing $40 000 is bought and $15 000 is paid in cash Sales amounting to $57 000 take place, of which $28 000 is in debtors at the end of the month Equipment of $50 000 has been acquired Depreciation & Amortisation is to provided as follows: Gross Profit Margin Net Profit Margin Owner earning Return on Equity Liquidity Ratios Current Ratio Acid Test Solvency Ratios Solvency Equity Ratio 25% pa on vehicle 10% pa on furniture Profit & Loss Jul-17 % Aug-171 % Revenue Cost of Sales 27,000 18,000 0.67 9,000 0.33 Gross Profit Depreciation 832 Net Profit (Loss) 8,168 0.30 Balance Sheet Current Assets 35,550 3.56 Bank Stock/Inventory Debtor 16,550 7,000 2.86 12,000 Non Current Assets 13,387 13,500 113 33,781 34,500 719 Furniture and Fittings Opening Balance Accumulate Dpn Motor Vehicle Opening Balance Accumulate Dpn Total Assets 82,718 Current Liabilities 10,000 10,000 44,550 44.550 54,550 1.52 Creditors Non Current Liabilities Liability Total Liabilities Capital P/L 20,000 0.41 8,168 28,168 0.29 2.94 Total Equity Profitability Ratios: Transactions for August (added here for ease of reading -check requirements) A further 11,000 shares of $2 each has been issued Pay half of creditors that are outstanding at the beginning of the month Receive outstanding monies from debtors at the beginning of the month Inventory costing $40 000 is bought and $15 000 is paid in cash Sales amounting to $57 000 take place, of which $28 000 is in debtors at the end of the month Equipment of $50 000 has been acquired Depreciation & Amortisation is to provided as follows: Gross Profit Margin Net Profit Margin Owner earning Return on Equity Liquidity Ratios Current Ratio Acid Test Solvency Ratios Solvency Equity Ratio 25% pa on vehicle 10% pa on furniture
