Financial Statement

Analysis Live Project.

S U B M I T T E D TO - P R O F A R U N K U M A R A G A RWA L
S U B M I T T E D B Y- A N A N D S H E K H A R M I S H R A
(19BSP0328)
 Profit and loss Account of PG-(99A)
Profit & Loss Statement
Month Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20
Income
Total Sales 1,95,000 2,21,000 1,82,000 1,69,000 1,82,000 1,82,000 2,08,000 2,27,500
Less Total Disc/Comm 0 0 0 0 0 0 0 0
Total Net Income 1,95,000 2,21,000 1,82,000 1,69,000 1,82,000 1,82,000 2,08,000 2,27,500
Less Total Cost of Goods Sold 45,000 45,000 45,000 45,000 45,000 45,000 45,000 45,000
Gross Profit 1,50,000 1,76,000 1,37,000 1,24,000 1,37,000 1,37,000 1,63,000 1,82,500
Expenses
General & Administrative 100 100 100 100 100 100 100 100
Marketing & Promotional 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Operating Expenses 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000
Motor Vehicle Expenses 600 600 600 600 600 600 600 600
Website Expenses 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Total Employment Expenses 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000
Occupancy Costs 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Other Expenses 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Total Expenses 49,700 49,700 49,700 49,700 49,700 49,700 49,700 49,700
Monthly Net Profit / (Loss) 1,00,300 1,26,300 87,300 74,300 87,300 87,300 1,13,300 1,32,800
 Balance sheet of PG (99A) from Jan 2020-Aug 2020
from jan 2020 to aug
Month 2020 Liabilities
Assets Current Liabilities
Current Assets Bank Overdraft ₹ 9,00,000.00
Cash on hand ₹ 5,00,000.00 Credit Card Debt ₹ 0.00
Debtors ₹ 10,000.00 Creditors ₹ 65,000.00
Prepaid Expenses ₹ 1,95,000.00 PAYG Witholding Payable ₹ 40,000.00
Inventory insurance ₹ 1,20,000.00
Beds ₹ 1,40,000.00 Current portion of long term debt ₹ 2,00,000.00
Parts ₹ 80,000.00 Etc. ₹ 60,000.00
Etc. ₹ 50,000.00 Total Current Liabilities ₹ 13,85,000.00
Total Inventory ₹ 2,70,000.00 Long Term Liabilities
Short term Investments ₹ 30,000.00 Equipment Finance ₹ 8,00,000.00
Other current assets ₹ 80,000.00 Long term Loans ₹ 80,00,000.00
Total Current Assets ₹ 10,85,000.00 Total Long Term Liabilities ₹ 88,00,000.00
Fixed Assets Total Liabilities ₹ 2,11,85,000.00
Computer ₹ 40,000.00 Shareholders Funds ( Equity)
Store Fit Out ₹ 1,50,000.00 Owners Funds ₹ 1,00,00,000.00
Office Equipment ₹ 20,000.00 Retained Earnings ₹ 8,00,000.00
Leasehold ₹ 0.00 Current Year Profit ₹ 2,00,000.00
Buildings & improvements ₹ 1,80,00,000.00 Total Shareholders Funds (Equity) ₹ 1,10,00,000.00
Furniture & Fixtures ₹ 20,00,000.00
Etc. ₹ 1,00,000.00
Total Fixed Assets ₹ 2,01,00,000.00

Total Assets ₹ 2,11,85,000.00 2,11,85,000.00

 Profit and Loss
Ratios                
   
Gross Margin
Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20
Calculations.
(Gross Profit / Net
Income) 77% 80% 75% 73% 75% 75% 78% 80% Number of room in the PG-15
Net Margin  
(Net Profit / Net one room carry 3 person
 
Income) 51% 57% 48% 44% 48% 48% 54% 58% Rent 6500 per person
Mark Up  
((Net Income Less Cost 292500
of Goods Sold) / (Cost total rent Pg can earn in a
month
of Goods Sold)) x 100 333.33 391.11 304.44 275.56 304.44 304.44 362.22 405.56  
Break Even  
( Expenses/((1-(Cost of occupancy in month are as follow
Revenu
Goods Sold/ Net 62407.38 67736.2 66024. 66024.8 63420.8 Jan -30 Rooms
Income)) 64610 636 66024.82 9 82 2 6 61954.79 195000
Feb-34 Rooms
221000
Mar-28 Rooms
182000
Apr-26 Rooms
169000
May-28 Rooms
Balance Sheet Ratios    
182000
      Jun-28 Rooms
182000
Current Ratio (Current Assets / Current Jul-32 Rooms
208000
Liabilities)   0.783393502 Aug-35 Rooms
227500
 
Quick Ratio ( Current Assets less inventory) / cost incured by owner per month
 
(Current Liabilities less bank overdraft)   2  
wifi
2000
cleaning
6000
laundry
Working Capital Funds
5000
(Current Assets Less Current Liabilities)   -3,00,000 Electricity

20000
Leverage Ratio (Total Liabilities / Total Assets)   1  
33000
cost of fooding

Debt to Equity Ratio

(Total Liabilities / Total Shareholders Funds)   1.925909091 45000
 Comments on the ratio.
• Gross profit margin shows the percentage of revenue that exceeds a company's costs of goods sold. ... The higher the margin, the more effective the company's
management is in generating revenue for each dollar of cost. In this case its more than 75%.

• A high net profit margin means that a company is able to effectively control its costs and/or provide goods or services at a price significantly higher than its costs.
Therefore, a high ratio can result from: Efficient management. Low costs (expenses) in this case its more than 45%

• The markup is the price spread between the cost to produce a good or service and its selling price. In order to ensure a profit and recover the costs to create a
product or service, producers must add a markup to their total costs the markup is more than 300% it shows the price is high than the cost.

• The breakeven point is calculated by dividing the fixed costs of production by the price per unit minus the variable costs of production. The breakeven point is the
level of production at which the costs of production equal the revenues for a product. In this case the business attain breakeven between 60000-70000.

• Current ratio is .78 This means there are not enough current assets to cover the payments that are due on the company's current liabilities.

• The quick ratio is an indicator of a company's short-term liquidity position and measures a company's ability to meet its short-term obligations with its most liquid
assets. In this case quick ratio is 2 that’s means business generates cash quickly

• Negative working capital arises in a scenario wherein the current liabilities exceed the current assets. ... Negative working capital often arises when a business
generates cash so quickly that it can sell its products to the customer before it has to pay its bill to the supplier. The business has negative wc -300000 that’s
means it generates cash before the payment to supplier

• A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt (loans) or assesses the ability of a company
to meet its financial obligations. The company has taking the leverage of debt the most of the assets if financed by loan.

• The debt to equity ratio shows the percentage of company financing that comes from creditors and investors. A higher debt to equity ratio indicates that more
creditor financing (bank loans) is used than investor financing (shareholders). 1.92 debt to equity means it is a new company and its most of the assets finance by
debt.
Thankyou