Visit: Lings Cars |
Finance
Here is a summary of the performance for the past two years:
- 2005 Sales = £10,815,849 worth of new cars.
- 2005 Gross Income = £108,000
Ling at her office in her house in Gateshead. Her location means that her overheads can be kept very low. Income from sales, whilst only a small proportion of the total price of a car, represents a healthy mark up in relation to Ling's costs.
These are the more detailed figures for 2005.
| Balance Sheet for the year ended 31 December 2005 | ||
|---|---|---|
| FIXED ASSETS | ||
| Motor vehicles | ||
| Additions | 8175.00 | |
| Depreciation | 2043.75 | 6131.25 |
| Equipment | ||
| At 1 January 2005 | 1226.00 | |
| Additions | 1548.58 | |
| 2774.58 | ||
| Depreciation | 416.19 | 2358.39 |
| 8489.64 | ||
| CURRENT ASSETS | ||
| Debtors and Prepayments | 25957.09 | |
| Cash at Bank - Current Account | 3334.96 | |
| Cash at Bank - Premium Account | 17.16 | |
| 29309.21 | ||
| CURRENT LIABILITIES | ||
| Creditors and Accruals | 5982.43 | |
| NET CURRENT ASSETS | 23326.78 | |
| 31816.42 | ||
| CAPITAL ACCOUNT | ||
| At 1 january 2003 | 10087.77 | |
| Net Profit | 56023.64 | |
| 66111.41 | ||
| Drawings | 34294.99 | 31816.42 |
| 31816.42 | ||
| Profit and Loss Account for the year ended 31 December 2005 | ||
|---|---|---|
| Sales | 107543.04 | |
| Business Link Grant received | 1841.50 | |
| 109384.54 | ||
| EXPENSES | ||
| Commissions Paid | 8691.63 | |
| Rent re Operating Leases | 1762.5 | |
| Insurance | 85.05 | |
| Repairs and Maintenance | 476.95 | |
| Printing, Postage and Stationery | 2969 | |
| Advertising | 20874.74 | |
| Telephone | 1685.47 | |
| Computer running costs | 3885.88 | |
| Motor Vehicle Leasing | 1505 | |
| Motor Running expenses | 6087.11 | |
| Uniforms | 533 | |
| Travelling Expenses | 128.36 | |
| Accountancy Fees | 698 | |
| Bank Charges | 119.93 | |
| Use of home as office | 800 | |
| Subscriptions | 88.54 | |
| Sundries | 509.80 | 50900.96 |
| Depreciation | 24359.94 | |
| Total Expenses | 53360.90 | |
| Net Profit | 56023.64 | |
Ling plans to increase her revenue in 2006 to £181,000. Her sales figures and unique users visiting the Web site are all up on 2005. In January 2006, sales were up by 214%, in February, 130%, March 382%, July, 153% and August 123%. The sales figures for some months are affected by certain events such as the World Cup and the weather. The rise in sales for March for example might coincide with the onset of spring a traditional time for people to go out and start spending again!
- 2006 Gross Sales, compared to 2005 up to end of April 2006 = 211% increase.
- Assets include: Nuclear missile truck, London bus, and Beijing jeep.
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