PROFIT AND LOSS for WIDGET LTD, YEAR ENDING 31/12/10

SALES 25000

LESS COST OF SALES

rformance Ratios
DIRECT LABOUR 0
DIRECT MATERIALS 0
gross profit ratio sub total 0
%
EQUALS GROSS PROFIT 25000

net profit ratio LESS EXPENSES/OVERHEADS

%
RENT 0
INSURANCE 0
INTEREST 0
UTILITY BILLS 0
PROMOTION 0
BUSINESS RATES 0
sub total 0

EQUALS NET PROFIT 25000

 BALANCE SHEET as at …

FIXED ASSETS
OFFICE EQUIPMENT
FIXTURES AND FITTINGS £200,000.00
VEHICLES
IT HARDWARE £7,000.00
BUILDINGS £250,000.00
TOTAL FIXED ASSETS £457,000.00

CURRENT ASSETS
STOCK £70,000.00
DEBTORS £18,000.00
CASH £40,000.00
TOTAL CURRENT ASSETS £128,000.00

CURRENT LIABILITIES
CREDITORS/SUPPLIERS £35,000.00
OVERDRAFT £0.00
TOTAL CURRENT LIABILITIES £35,000.00

WORKING CAPITAL £93,000.00

TOTAL ASSETS EMPLOYED £550,000.00

FINANCED BY
LONG TERM LIABLITIES £150,000.00
SHAREHOLDERS FUNDS £300,000.00
RETAINED PROFIT £40,000.00
RESERVES £60,000.00

CAPITAL EMPLOYED £550,000

SALES The total value of every thing the business sells. Also known as SAL
TURNOVER. The total sales of the business is calculated by multiplyin

DIRECT LABOUR
The cost of those workers "directly" inolved in the production of

DIRECT MATERIALS
The cost of raw materials needed to make the produc

RENT
The cost of renting any premises the business m

INSURANCE
The cost of insurance that the business must

INTEREST The amount of interest that has to be repaid on loans that the busines
activities.

UTILITY BILLS
The total cost of telephone, electricity, gas and water to

PROMOTION
The cost of promoting the business, eg advertising, direct mail,

BUSINESS RATES Business rates are the business equivalent of council tax. All businesse
council for the collection of rubbish, street light
ess sells. Also known as SALES REVENUE OR SALES
is calculated by multiplying price by total quanitity sold.

nolved in the production of the product or service

needed to make the product or service.

ny premises the business may use.

ce that the business must have.

d on loans that the business has taken out to finance its

activities.

lectricity, gas and water to the business.

eg advertising, direct mail, leaflets, posters etc.

f council tax. All businesses must pay these to the local

ion of rubbish, street lighting etc