|
|
Can I have some financial information about the company?
The accounts are only available up to the end of 2001 because the final accounts for 2002 and beyond have not yet been finalised. However, the business does know how the accounts are looking through the use of their accounting software package which links all aspects of the trade directly through to a computer at the house. Weekly sales figures, monthly data and annual turnover so far can all be identified through this system.
Jilly knows that the turnover last year (2003) was around £150,000. Given that the business was turning over just £15,000 a year in 1997, this represents a 900% increase in turnover in 6 years!
The financial accounts for the company since 1999 are also available in Biz/ed's financial database.
Trading and Profit and Loss Account, 1998-2001
| 1998 | 1999 | 2000 | 2001 | |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Turnover: | 29,969 | 46,153 | 59,897 | 67,347 |
| Cost of sales: | ||||
| Purchases adjusted for stock | 2,452 | 4,077 | 4,592 | 8,100 |
| Wages | 7,645 | 11,587 | 20,309 | 26,763 |
| 10,097 | 15,664 | 24,901 | 34,863 | |
| GROSS PROFIT (Turnover - Cost of sales) | 19,872 | 30,489 | 34,996 | 32,484 |
| Expenditure: | ||||
| Rent and rates | 5,418 | 4,884 | 4,888 | 4,691 |
| Light and heat | 565 | 1,523 | 1,623 | 1,849 |
| Telephone and postage | 329 | 435 | 667 | 643 |
| Printing and stationery | 286 | 331 | 350 | 195 |
| Advertising | 0 | 236 | 361 | 83 |
| Motor expenses | 308 | 511 | 516 | 617 |
| Repairs and maintenance of equipment | 835 | 1,313 | 1,686 | 972 |
| Insurance and licences | 470 | 440 | 515 | 643 |
| Vehicle lease | 0 | 0 | 5,179 | 3,690 |
| Hire of equipment | 0 | 0 | 38 | 183 |
| Laundry and cleaning | 0 | 0 | 427 | 424 |
| General expenses | 47 | 79 | 61 | 66 |
| Accountancy fee | 320 | 520 | 600 | 780 |
| Depreciation | 0 | 1,880 | 671 | 671 |
| 8,578 | 12,152 | 17,582 | 15,507 | |
| Operating profit (Gross profit - Expenditure) | 11,294 | 18,337 | 17,414 | 16,977 |
| Finance costs: | ||||
| Bank loan interest | 0 | 250 | 234 | 247 |
| Hire purchase | 495 | 539 | 225 | 0 |
| Bank charges | 30 | 85 | 79 | 489 |
| 525 | 874 | 538 | 736 | |
| Operating profit - Finance costs | 10,769 | 17,463 | 16,876 | 16,241 |
| Loss on disposal of fixed assets: | ||||
| Motor vehicles | 0 | 0 | 1,964 | 0 |
| NET PROFIT (Operating profit - Finance costs - Loss on disposal of fixed assets) | 10,769 | 17,463 | 14,912 | 16,241 |
Balance Sheet, 1999-2001
| 1999 | 2000 | 2001 | |
|---|---|---|---|
| £ | £ | £ | |
| Fixed assets: | |||
| Fixtures and fittings | 3,082 | 3,802 | 3,383 |
| Motor vehicles | 3,747 | 0 | 0 |
| Computer equipment | 496 | 496 | 422 |
| 7,325 | 4,298 | 3,805 | |
| Current assets: | |||
| Stock | 320 | 410 | 765 |
| Cash at bank | 1,144 | 412 | 488 |
| Cash in hand | 240 | 336 | 444 |
| 1,704 | 1,158 | 1,697 | |
| Current liabilities: | |||
| V.A.T. | 0 | 986 | 1,458 |
| Trade creditors | 677 | 729 | 1,143 |
| Hire purchase | 2,366 | 0 | 0 |
| Social security & other taxes | 170 | 416 | 367 |
| 3,213 | 2,131 | 2,968 | |
| Net current assets (liabilities) (Current assets - Current liabilities) | (1509) | (973) | (1,271) |
| Fixed assets + Net current assets (liabilities) | 5,816 | 3,325 | 2,534 |
| Financed by: | |||
| Long term liabilities: | |||
| Bank loan 2-5 years | 2,667 | 1,388 | 2,054 |
| Capital account: | |||
| Balance brought forward | 1,998 | 3,150 | 1,938 |
| Add: | |||
| Net profit | 17,463 | 14,912 | 16,241 |
| 19,461 | 18,062 | 18,179 | |
| Less: | |||
| Drawings | 16,312 | 16,125 | 17,699 |
| 3,149 | 1,937 | 480 | |
| Long term liabilities + Capital account | 5,816 | 3,325 | 2,534 |
| Index | Previous Question | Next Question |