Interprenuership Essay Example

  • Category:
    Business
  • Document type:
    Article
  • Level:
    High School
  • Page:
    2
  • Words:
    758

Financial statements

Financial statements

Account name and explanation

30 JUNE 2013

2,508,780

creditor

2,508,780

(cash 2508780 was received from a creditor)

dividends

($.35000 was received as dividend)

interest

($.44000 received as dividend)

debenture

($200000 received as interest on debenture)

suppliers

($1425410 paid to suppliers)

Salaries and wages

($338820 paid as salaries and wages)

($145000 paid as rent)

Plant and equipment

($105000 was used to purchase plant and equipment)

($ 312560 was paid as tax)

dividend

($280000 was paid as dividend)

($20000 was paid as deposit at call)

Other expenses

($56155 paid as other expenses)

Diamond Industries Limit

Adjusted Trial balance as at 30th June 2013

Debit credit

Cash 392280

Account receivable 362000

Suppliers 14245410

Prepaid expenses 50000

Plant and equipment 105000

Accumulated depreciation — 120000

Accounts payable — 394000

Warrant payable — 10000

Common stock — 1350000

Service revenue — 856000

Wage expense 38200 —

Supplies expense 18480 —

Marketing expense 50000 —

Administration expense 250000 —

Distribution expense 185000 —

Employee benefit expense 31000 —

Depreciation expense 80000 —

Auditor’s remuneration 32000 —

Dividend 128000 —

Other expense 90000 —

Total 16,057,370 16,057,370

Statement of comprehensive income is the summation of a business’ net income plus other items that have to be included in the income statement which are yet to be realized example unrealized gain or loss

Diamond industries limited

Statement of comprehensive income for the year ended30th June 2013

Revenue 3196000

Cost of goods sold (900000)

Gross profit 2296000

Qther income

Distribution cost 185000

Administration cost 250000

Other expenses 90000

Finance cost 75000

Profit before tax 1696000

Income tax (508800)

Profit for the year 1187200

Other comprehensive income

Items that will not be classified to profit or loss

Gain on property revaluation 45000

Investment in equity instrument (39200)

Items that may be reclassified subsequently to profit or loss

Cash flow hedges 800000

Income tax relating to items that may be reclassified ( 25260)

Total comprehensive income for the year 1967740

Statement of change in equity also known as the statement of retained earnings is the change in owner’s equity in a particular accounting period.

Diamond industries limited

Statement of changes in equity for the year ended 30th June 2013

Share Retained revaluation Total

Capital earnings surplus equity

Balance at July 2011 1000000 104000 — 110

Changes in accounting policy — — — —

Correction of prior period error — — — —

Restated balance 1000000 — — 1104000

Change in equity for the year

Issue of the share capital — — — 110400

Income for the year 1000000 — — 1000000

Revaluation gain 1000000 — — 1000000

Dividends (100000) — — (100000)

Balance as at 31 dec 2011 900000 — — 900000

Change in equity for the year

Issue of the share capital 350000 — 60000 410000

Income of the year 17500 — 60000 77500

Revaluation gain — 500000 — 500000 —

Dividends (24500) — — (24500)

Balance as 30 June 2013 7000 5000 — 475500

A statement of financial position of a business also known as the balance sheet is the statement of liabilities and assets that is owned by a business at a particular period of time.

Diamond industries limited

Balance sheet as at 30 June 2013

Non-current assets:

Land 200000

Building 307000

plant 40500

Good will 200000

Total assets 747500

Current assets

Cash 105000

Inventories 425000

Debtors 202000

TOTAL ASSETS 1479500

LIABILITIES

Non-current liabilities

Long term borrowing 200000

Current liabilities creditors

Trade creditors 394000

Deferred tax liability 27000

Currenttax payable 8100

TOTAL LIABILITIES (702000)

NET ASSETS 777500

OWNERS EQUITY

Share capital 350000

Retained earnings 104000

Revaluation reserve 42000

6% unsecured bond 550000

Total Equity 777500

A statement of cash flows is an accounting technique that focuses on cash in a particular period of time. it includes cash on hand and demand deposits. The activities that are considered most in a statement of cash flow includes; operating, investing and financing activities.

Diamond industries limited

Cash flow statement

For the year ended 30th June 2013

Cash flows from operating activities:

Operating income (EBIT) 3196000

Depreciation expense 80000

Increase in accounts receivable (282000)

Decrease in prepaid expenses 5000

Decrease in accounts payable (10000)

Decrease in accrued expenses (10000)

Net cash flow from operating activities 2979000

Cash flow from investing activities:

Purchase of equipment (105000)

Net cash flow from investing activities 105000

Cash flows from financing activities:

Payment of dividends (280000)

Net cash flow from financing activities (280000)

Net change in cash 2804000

Beginning cash balance 20710

Ending cash balance 2824710

Work cited

Peterson, Drake P, and Frank J. Fabozzi. Analysis of Financial Statements. , 2012. Print.