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    Happyjacline Robert Njako Acc128 BHRM 2

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    jupiter stationery
    The document contains a budgeted income statement and statement of financial position for Happy Jaceline Robert Njako's business for the year ending December 2022. It also includes calculations of various financial ratios to analyze profitability and liquidity. The income statement budgets sales of TZS 250,000 and net profit of TZS 25,000. The statement of financial position shows total assets of TZS 137,400 consisting mainly of fixed assets of TZS 121,920 and current assets of TZS 48,500, financed by capital, net profit and loans. Key financial ratios calculated include gross profit margin of 28.8%, net profit margin of 10.1%, return on total capital of 19.6%, current ratio of

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    Happyjacline Robert Njako Acc128 BHRM 2

    Uploaded by

    jupiter stationery
    29 views8 pages
    The document contains a budgeted income statement and statement of financial position for Happy Jaceline Robert Njako's business for the year ending December 2022. It also includes calculations of various financial ratios to analyze profitability and liquidity. The income statement budgets sales of TZS 250,000 and net profit of TZS 25,000. The statement of financial position shows total assets of TZS 137,400 consisting mainly of fixed assets of TZS 121,920 and current assets of TZS 48,500, financed by capital, net profit and loans. Key financial ratios calculated include gross profit margin of 28.8%, net profit margin of 10.1%, return on total capital of 19.6%, current ratio of

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    HAPPYJACLINE_ROBERT_NJAKO_ACC128_BHRM_2[1]

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    The document contains a budgeted income statement and statement of financial position for Happy Jaceline Robert Njako's business for the year ending December 2022. It also includes calculations of various financial ratios to analyze profitability and liquidity. The income statement budgets sales of TZS 250,000 and net profit of TZS 25,000. The statement of financial position shows total assets of TZS 137,400 consisting mainly of fixed assets of TZS 121,920 and current assets of TZS 48,500, financed by capital, net profit and loans. Key financial ratios calculated include gross profit margin of 28.8%, net profit margin of 10.1%, return on total capital of 19.6%, current ratio of

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    29 views8 pages

    Happyjacline Robert Njako Acc128 BHRM 2

    Uploaded by

    jupiter stationery
    The document contains a budgeted income statement and statement of financial position for Happy Jaceline Robert Njako's business for the year ending December 2022. It also includes calculations of various financial ratios to analyze profitability and liquidity. The income statement budgets sales of TZS 250,000 and net profit of TZS 25,000. The statement of financial position shows total assets of TZS 137,400 consisting mainly of fixed assets of TZS 121,920 and current assets of TZS 48,500, financed by capital, net profit and loans. Key financial ratios calculated include gross profit margin of 28.8%, net profit margin of 10.1%, return on total capital of 19.6%, current ratio of

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    MZUMBE UNIVERSITY

    MBEYA CAMPUS COLLEGE

    NAME: HAPPYJACLINE ROBERT NJAKO

    REG NO: 2634161 /T.21

    PROGRAM: BHRM 2

    SUBJECT CODE: ACC 281

    SUBJECT NAME: BASIC ACCOUNTING AND FINANCIAL MANAGEMENT

    LECTURER NAME: SARIKIAEL BORISH NNKO

    NATURE OF TASK: INDIVIDUAL ASSIGNMENT

    DATE OF SUBMISSION: 5th December 2022

    QUESTION

    Assume you are running your own business prepare the budgeted statement of comprehensive
    income and statement of financial position for the next year. From the financial statements you
    have prepared compute various groups of financial rations and show how they can help you to
    run your business smoothly.
    TABLE OF CONTENT

    Definition of income statement

    Definition of statement of financial position

    Comprehensive income (income statement to the year ending December 2022)

    Statement of financial position as at 31 December 2022

    Ratio analysis and ways


    INCOME STATEMENT

    Income statement is one of the financial statements of a company and shows the company's
    revenues and expenses during a particular period. Income statement shows a company's
    revenues, expenses and profitability over a period of time. It is also sometimes called a profit and
    loss statement or service. An income statement shows whether a company is making profit or
    loss for a given period.

    The statement of financial position is a financial statement that reports the assets, liabilities and
    equity of a company and a given date. IL is also called the balance sheet. It is commonly used to
    assess the position of a bus in terms of financial stability and potential risk.

    This paper have going to prepare the budgeted statement of comprehensive income and
    statement of financial position.

    Comprehensive income

    INCOME STATEMENT TO THE YEAR ENDING 31st DECEMBER 2022

    Sales 250,000

    less: sales return /Return inward 2,500

    Net profit 247,500

    LESS: COST OF GOODS SOLD

    Opening stock 20,000

    Add: purchases 200,000

    Add: carriage inward . 2,000

    202,000

    Less: Return outward 4,000

    Net Purchases 198,000


    Cost of goods available for sale 218,000

    Less: closing stock 22,000 176,000

    Gross profit 71,500

    LESS: EXPENSES

    Carriage outward 3,000

    Motor repair 4,000

    Increase in provision 300

    Travel expenses 3,700

    Telephone insurance 25,000

    Water expenses 2,500

    Depression

    Land and build 2, 000

    Motor vehicle. 3,500

    Office equipment 2,500

    Total expenses 46,500

    Net profit 25,000

    STATEMENT OF FINANCIAL POSITION AS AT 31st DECEMBER 2022

    NON- CURRENT ASSET/FIXED ASSET at cost account depression book values

    Land and build 70,000 50,000 65,000

    Equipment 33,000 46,000 28,400


    Motor vehicle 38,000 9,480 28,520

    Total fixed asset 121,920

    CURRENT ASSET

    Stock 22,000

    Debtor 22,000

    Bank 4,000

    Pre-paid insurance 500 48,500

    Less: CURRENT LIABILITIES

    Creditors 30,000

    Owing wages 2,200

    Provision for debtor 820 3,3020

    WORKING CAPITAL 15,480

    CAPITAL EMPLOYED 137,400

    FINANCED BY

    CAPITAL 127,500

    Add: net profit 2,500

    152,500

    Less: Drawing 24,000

    128,500

    Add: loans 8,900

    137,400
    RATIO ANALYSIS

    CATEGORIES

    PROFITABILITY RATIO

    Measure performance of business and profitability is portion of revenue that is an profit in

    a) cross profit

    Gross profit × 100%

    Sales

    71,500 ×100%

    247,500

    28.8

    Comment: sales have contributed 28.8% of Gross profit. Hence this helps to improve the profit
    in the business

    b) Net profit margin

    Net profit×100%

    Net sales

    25,000 ×100%

    247,500

    10.1%

    Comment: sales have contribute 10.1% of profit


    c) Return on total capital

    Net profit ×100%

    Total capital

    25,000×100

    127,500

    19.6

    Comment: capital have contribute 19.6% of profit

    LIQUIDITY RATION

    This is used to show how business have ability to convert current assets to cash and ability to
    meet short obligation (current liabilities)

    Current ration

    Current asset

    Current liabilities

    48,500

    33,020

    1:1.4

    Comment: business have ability to meet short term ablation through current asset

    Cash ration

    Bank

    Current liabilities
    4,000

    33,020

    1:0.12

    Comment: our bus has not ability to have cash in order to pay current liabilities. Though that our
    business can improved also help to make good budgeting.

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