Sbv Financial Statements

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Profit and loss statement

The profit and loss statement is a summary of a business’s income and expenses over a

specific period. It should be prepared at regular intervals (usually monthly and at financial

year end) to show the results of operations for a given period. Profit or loss is calculated in

the following way:

Less

Sales Discounts

Sales Commissions

Equals

Gross Profit

Less

Expenses

(Fixed & Variable)

Opening StockEquals

Plus

Stock Purchases

Equals

Stock available for sale

Less

Cost of Goods Sold

Less

Equals

Sales

Net Sales

HINT

Only those businesses thathave goods (products) tosell will use the calculationof cost of goods sold

Net Profit

TIP

Regularly (monthly) produce profitand loss information and compareagainst previous month’s activities toensure your profit expectations arebeing met.

Closing Stock

Calculating the cosgoods sold variesdepending on whetbusiness is retail,manufacturing, or business. In retailinwholesaling, compcost of goods soldthe reporting periobeginning and endiinventories. This, oincludes purchasesduring the reportinIn manufacturing, itfinished-goods invplus raw materialsinventories, goods-

process inventorieslabour, and direct f overhead costs.In the case of a ser business, the revebeing derived fromactivities of individrather than the salproduct and hencecalculation of costsold is a smaller ta

-

Equals



-

materials requiredthe income.



Income

Sales $52,000

Total Sales $52,000

Opening Stock $ -

Stock Purchases $34,320Less Closing Stock $3,120

$20,800

Expenses

Advertising $500

Bank Service Charges $120

Insurance $500

Payroll $13,000

Professional Fees (Legal, Acco $200

Utilities & Telephone $800Other: Computer Software $480

Expenses total $15,600

$5,200Note; Cost of Goods Sold calculation:

Towards the end of the year, Joe manages to purchase 100 more ty

supplier for an order in the new year. This leaves him with $3,120 oend of the year.

Cost of Goods Sold

Total Cost of Goods Sold(COGS) $31,200

Gross Profit

Net Profit before Tax

Joe’s Motorbike Tyres

Profit and Loss Statement

As at end of Year One

Where a business is a service business, that is, you are selling

products, then the profit and loss statement will generally not have

calculation. In some instances, where labour costs can be directly at

you may consider including these costs as a cost of goods (services)

Joe’s Cost of Goods Calculation

Opening Stock Nil

Add Stock Purchased during the year $34,320 (1100 tyres @ 3

Equals Stock available to sell $34,320

Less Stock on hand at end of year $ 3,120 (100 tyres @ 31

Cost of Goods Sold $31,200

t of

her theholesale,service

g andting the

duringinvolves

ngf course,madeperiod.involvesntories,

in-

, directactory

viceue isthealsof a

thef goodsk due to



o earn



( 1,000 tyres @ $ 52each)

( See note below)

res on credit from his

stock on hand at the

ervices not goods or

a cost of goods sold

tributed to sales, then

sold.

1.20 each)

.20 each)



Small Business Victoria: Information sheet

▌Profit & Loss Statement

Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10

Sales

Sale of goods/services

Sundry Income (e.g. Commission earned, frachise fees etc.)

Etc.

Total Sales 0 0 0 0 0 0

Less Discounts/Commissions

Sales Discounts given

Sales Commissions paid

Total Discounts/ Commissions 0 0 0 0 0 0

Total Net Income 0 0 0 0 0 0

O enin Stock

Stock Purchased

0 0 0 0 0 0

Less Closing Stock

Total Cost of Sales 0 0 0 0 0 0

Gross Profit 0 0 0 0 0 0

Bank char esCredit card commission

Consultant fees

Office Supplies

License fees

Business insurance

Etc.

Total General & Administrative 0 0 0 0 0 0

Advertising

Promotion - General

Promotion - Other

Etc.

Total Marketin & Promotional 0 0 0 0 0 0

Newspapers & magazines

Parking/Taxis/Tolls

Entertainment/Meals

Travel/Accomodation

Laundry/dry cleaning

Cleaning & cleaning products

Sundry supplies

E ui ment hire

Etc.

Total Operating Expenses 0 0 0 0 0 0

Motor Vehicle Expenses

How to use it: Give careful thought to the headings. Expand the sales income and expenses area if your business has distinct categories (e.g. a restaurant may h

and cost of sales for each also separated).

General & Administrative

Marketing & Promotional

Operating Expenses

Month

Income

Cost of Sales

Expenses



Fuel

Vehicle service costs

Tyres & other replacement costs

Insurance

Registrations

Total Motor Vehicle Expenses 0 0 0 0 0 0 0

Domain name registration

Hosting expenses

etc

Total Website Expenses 0 0 0 0 0 0 0

Permanent

Salaries/Wages

PAYE

Superannuation

Other - Employee Benefits

Recruitment costs

Total Perm. Employment Expenses 0 0 0 0 0 0 0

Casual

Salaries/Wages

PAYE

Superannuation

Other - Employee Benefits

Recruitment costs

Total Casual Employment Expenses 0 0 0 0 0 0 0

Workcover Insurance

Total Employment Expenses 0 0 0 0 0 0 0

Electricity/Gas

TelephonesProperty Insurance

Rates

Rent

Repair & maintenance

Waste removal

Water

Etc.

Total Occupancy Costs 0 0 0 0 0 0 0

Total Other Expenses 0 0 0 0 0 0 0

0 0 0 0 0 0 0

Net Profit / (Loss) 0 0 0 0 0 0 0

0 0 0 0 0 0 0Total Monthly Net Profit / (Loss)

Total Expenses

Employment Expenses

Website Expenses

Other Expenses

Occupancy Costs



mall Business Victoria: Information sheet

Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10ncome

Total Sales 0 0 0 0 0 0 0 0 0 0

Less Total Disc/Comm 0 0 0 0 0 0 0 0 0 0

Total Net Income 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

Gross Profit 0 0 0 0 0 0 0 0 0 0

Expenses

General & Administrative 0 0 0 0 0 0 0 0 0 0

Marketing & Promotional 0 0 0 0 0 0 0 0 0 0

Operating Expenses 0 0 0 0 0 0 0 0 0 0

Motor Vehicle Expenses 0 0 0 0 0 0 0 0 0 0

Website Expenses 0 0 0 0 0 0 0 0 0 0

Total Employment Expenses 0 0 0 0 0 0 0 0 0 0

Occupancy Costs 0 0 0 0 0 0 0 0 0 0

Other Expenses 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

Monthly Net Profit / (Loss) 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

Total Expenses

ow to use it: Give careful thought to the headings. Expand the sales income and expenses area if your business has distinct categories (e.g. a restaurant may have food sales

everage sales listed separately and cost of sales for each also separated).

Month

Total Monthly Net Profit /

Loss)

Less Total Cost of Gooods Sold



#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!




Profit and Loss Ratios

Mark Up

(Net Income Less Cost of Goods Sold) /Cost of Goods Sold)) x 100

Break Even (Expenses/(1-Cost of Goods Sold)/ Net Income))

Gross Margin

Gross Profit / Net Income)

Net Margin (NetProfit / Net Income)



Cash $5,100

Debtors $18,000

Stock $3,120

$26,220

Computer $5,500

Store Fit Out $8,100

$28,600

$54,820

Credit Card $5,500

Creditors $4,120

$9,620

$9,620

$45,200

Owners’ Funds $40,000

Current Year Profit $5,200

$45,200

Current Liabilities

Total Current Liabilities

Joe’s Motorbike Tyres

Balance Sheet

As at end of Year One

Current Assets

Total Current Assets

Non-current Assets

Office Equipment $15,000

Total Non-current Assets

TOTAL ASSETS

TOTAL LIABILITIES

NET ASSETS

Shareholders’ Equity

TOTAL SHAREHOLDERS’ EQUITY

Non-current Liabilities

Total Non-current Liabilities



Small Business Victoria: Information sheet

Start of

Business Jun 10 Dec 10

General

Rates

Workcover

InsuranceEtc.

Total Prepaid expenses 0 0 0

Bikes

Parts

Etc.

Total Inventory 0 0 0

0 0 0

Computer

Store Fit Out

Office Equipment

Leasehold

Buildings & improvements

Furniture & Fixtures

Etc.

0 0 0

Total Assets 0 0 0

Bank Overdraft

Credit Card Debt

Creditors

GST collected

Assets

Current Liabilities

Fixed Assets

Total Fixed Assets

▌Balance SheetPrepare a balance sheet for the start of the business, six months later and then at the end of the first year. Draw

the information from the Profit & Loss Statement and the Cash Flow Statement. A Balance Sheet brings together

the results from the Profit & Loss Statement and the Cash Flow Statement. (Download it from the Financial

Management section of the Business Victoria website at www.business.vic.gov.au.)

s statement s ows t e nanc a pos t on o

the business "as at " a point in time

Prepaid Expenses

Cash on hand

Short term Investments

Other current assets

How to use it:Fill in the figures below, expanding or reducing the assets, liabilities and shareholders equity areas.

Month

Current Assets

Total Current Assets

Liabilities

Debtors

Inventory



Etc.

0 0 0

Motor Vehicle Loan

Equipment Finance

Long term Loans

0 0 0

Total Liabilities 0 0 0

0 0 0

Owners Funds

Retained Earnings

Current Year Profit

0 0 0

#DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0!

0 0 0

#DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0!

Superannuation

PAYG Witholding Payable

Workcover Insurance Payable

Current portion of long term debt

Net Assets

Total Shareholders Funds (Equity)

Balance Sheet Ratios

Debt to Equity Ratio (Total

Liabilities / Total Shareholders Funds)

Total Current Liabilities

Long Term Liabilities

Total Long Term Liabilities

Current Ratio (Current Assets / Current Liabilities)

Quick Ratio ( Current Assets less inventory) / (Current

Liabilities less bank overdraft)Working Capital Funds (Current

Assets Less Current Liabilities)

Leverage Ratio (Total Liabilities / Total Assets)

Shareholders Funds ( Equity)



For the Year EndingCash at Beginning of Year

Cashflows from OperationsCash receipts from customers

(enter positive amounts) Cash Sales

Cash collected from customers (debtors)

Funding from Creditors

Stock purchased, not yet paid

Cash paid for

(enter negative amounts) Total Expenses

Inventory (stock)purchases

Funding to Debtors

Sales made not yet collected

Net Cash Flow from Operations -

Investing ActivitiesCash receipts from

(enter positive amounts) Sale of property and equipment

Matured Investments

Cash paid for

(enter negative amounts) Purchase of property and equipment

Purchase of investments

Net Cash Flow from Investing Activities - [42]

Financing ActivitiesCash receipts from

(enter positive amounts) Increase in short term debt

Increase in long term debt

Increase in equity (proceeds from owners)

Cash paid for

(enter negative amounts) Repayment of loans

Dividends

Net Cash Flow from Financing Activities -

Net Increase in Cash -

Cash at End of Year -

Cash Flow Statement

Sbv Financial Statements

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