Assessment Task – Financial Statements and Performance Analysis Report
The following Trial Balance was extracted from the books of Yeovil Place as at the close of business on 30th June 2018.
Debit Credit
£ £
Leasehold Premises 20 000
Furniture & Equipment 8 800
Capital Invested 16 979
Stocks at 01/07/2017 900
Purchases 40 528
Sales 84 436
Creditors 4 000
Wages 12 730
Bank Loan 4 500
Council Tax 1 640
Gas & Electricity 2 444
Debtors 150
Business Expenses 1 456
Cleaning 760
Maintenance 1 000
Advertising and Promotions 2 550
Owners Drawings 11 000
Loan Interest 500
Cash in Hand 890
Bank Balance 4 567
TOTALS 109 915 109 915
Stocks as at 30th June 2018 was £720
Required:
Task 1:
Using the trial balance information provided, prepare a Profit and Loss Statement of Yeovil Place for the year ended 30th June 2018 and a Balance Sheet as at that date. (40 marks) – Ensure that you show all your workings to gain full marks. You may use templates provided.
Task 2:
Comment on the performance of the business using ratio analysis, conduct a Cost and Revenue analysis and advise the company on ways of improving profitability and performance based on the information above and the result from 1 (above). (35 marks) – 1 500words
Part 2 of the question requires you to address the following elements:
Define costs and Identify and evaluate different types of costs incurred and their behaviour. (5 marks)
Define Ratios and evaluate ratios as a Performance Management tool including benchmarking factors. (5 marks)
State the 5 different classes of Ratios. (5 marks)
Define each Ratio and calculate as per given formulae and discuss influencing factors. (15 marks) – see appendix for formulae.
Give recommendations on how the company can improve performance. (5 marks)
