You have been asked to produce a Profit & Loss Statement for Bayford Fashion for the year to 31 March2021, a business selling clothing both directly to UK retailers and online direct to consumers. Most of theproduct is imported from Asia. You have been provided with the information below from which you need todetermine how to use for the production of the required statement.Amount & Further InformationThe company sells an average of 15,400 garments a monthto retailers and 6,250 garments a month to onlinecustomers.The average selling price of each garment to retailers is£24 (excluding VAT) and £57.60 (including VAT at 20%) toonline customers.ItemSales VolumePricingUnit CostThe average cost of each garment is £9 including all importduties. Delivery and packaging costs to the customersaverage £0.5 per garment for retailers and £1.50 for onlinecustomers.The premises are rented and cost £105,000 a month paidquarterly in advance on the 1st January, 1st April, 1st Julyand 1st October.The company has 55 employees with an average salary of£28,000 a year. During the year £12,000 in total wasPremisesSalariesloaned to staff for various reasons and the balance was stilloutstanding at the year-end. The company has two bank loans in place. Loan A had anaverage outstanding balance of £1.2m and the interest onthis was a flat rate 7% per annum. Loan B had an averageoutstanding balance of £250,000 and the interest on thiswas a flat rate 5% per annum. During the year £217,500 ofcapital on both these loans was repaid in proportion to therespective loan sizes.The Fixed Assets in the business originally cost £820,000 intotal. These are still being depreciated on a Straight Linebasis over 8 years. (Assume the all assets were purchasedat the same time and have not yet been fully depreciated).The company spent £290,000 marketing to onlineconsumers and £180,000 marketing to retailers during thePayments to the BankDepreciationSales & Marketingyear.A further £160,000 of various other operating costs wereincurred during the year. In addition, a further £20,000 ofinvoices had been received in March 2021 for supplies tobe delivered in April and May 2021.Other ExpenditureTravel Costs£146,000 was spent on Travel during the period to 31March 2021. However, £7,000 of this was an advancepayment for a Business Class flight to Hong Kong for theCEO to meet the company's main supplier later in June.Historically this runs at £10,000 a month, although as atthe year-end date, three months of invoices have not beenreceived from the accountancy supplier despite theservices having been used.One major retailer customer appears to be in severefinancial difficulty and has an outstanding balance of£200,000 which is now four months overdue. The SalesDirector, who knows the customer very well, assures youthat the amount will be paid off soon and that you shoulddefinitely not be concerned.AccountancyBad DebtsUsing the details shown above:Create a Profit & Loss Statement for the year to 31 March 2021. You must show Sales, Gross Profit,and Gross Margin (%) by each sales sector; all relevant cost items in the statement; Total Costs,EBITDA (Earnings Before Interest Depreciation & Amortisation), Operating Profit (EBIT) as well asProfit Before Tax, and Profit Before Tax Margin (%).

The profit and loss account shows the net profit during the year. It classifies profit into gross…

You have been asked to produce a Profit & Loss Statement for Bayford Fashion for the year to 31 March 2021, a business selling clothing both directly to UK retailers and online direct to consumers. Most of the product is imported from Asia. You have been provided with the information below from which you need to determine how to use for the production of the required statement. Amount & Further Information The company sells an average of 15,400 garments a month to retailers and 6,250 garments a month to online customers. The average selling price of each garment to retailers is £24 (excluding VAT) and £57.60 (including VAT at 20%) to online customers. The average cost of each garment is £9 including all import duties. Delivery and packaging costs to the customers average £0.5 per garment for retailers and £1.50 for online Item Sales Volume Pricing Unit Cost customers. Premises The premises are rented and cost £105,000 a month paid quarterly in advance on the 1st January, 1st April, 1st July and 1st October. The company has 55 employees with an average salary of £28,000 a year. During the year £12,000 in total was loaned to staff for various reasons and the balance was still Salaries outstanding at the year-end.

You have been asked to produce a Profit & Loss Statement for Bayford Fashion for the year to 31 March 2021, a business selling clothing both directly to UK retailers and online direct to consumers. Most of the product is imported from Asia. You have been provided with the information below from which you need to determine how to use for the production of the required statement. Amount & Further Information The company sells an average of 15,400 garments a month to retailers and 6,250 garments a month to online customers. The average selling price of each garment to retailers is £24 (excluding VAT) and £57.60 (including VAT at 20%) to online customers. The average cost of each garment is £9 including all import duties. Delivery and packaging costs to the customers average £0.5 per garment for retailers and £1.50 for online Item Sales Volume Pricing Unit Cost customers. Premises The premises are rented and cost £105,000 a month paid quarterly in advance on the 1st January, 1st April, 1st July and 1st October. The company has 55 employees with an average salary of £28,000 a year. During the year £12,000 in total was loaned to staff for various reasons and the balance was still Salaries outstanding at the year-end.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

West Midlands Smooth dairies, manufacture a range of dairy products like milk, cheese and yoghurt in one factory. The products are stored in a rented warehouse which is nearby the West Midlands Smooth factory. Products are sold to over 300 supermarkets located within a 250km radius of the company’s factory. The products have an average shelf life of ten days. The company’s financial statement year-end is 30 September 2020.It is now three months since the year end at your audit client of West Midlands Smooth and the annual audit is almost complete, but the auditor’s report has not been signed. The following events have just been brought to your attention. (Note: all these events occurred in mid-December)• Bankruptcy of a major customer representing 15% of the trade receivables on the statement of financial position.• A batch of cheese produced by the company was found to contain some chemical impurities. Over 500 customers have complained about food poisoning after eating the cheese.…
Snyder Brush Company sells standard hair brushes. The following information summarizes Snyder's operating activities for 2024: 1(Click the icon to view the information.) Requirements 1. Calculate the operating income for 2024. 2. Snyder sold 5,400 brushes in 2024. Compute the unit cost for one brush. Requirement 1. Calculate the operating income for 2024. Snyder Brush Company Income Statement Year Ended December 31, 2024 Revenue: (1) Cost of Goods Sold: (2) (3) (4) (5) Cost of Goods Sold Gross Profit (6) Operating Income Requirement 2. Snyder sold 5,400 brushes in 2024. Compute the unit cost for one brush. (Round your answer to the nearest cent.) Cost per brush = 1: Data Table…
1
Morrisey & Brown, Limited, of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's Income statements for the three most recent months follow: sales in units sales Cost of goods sold Gross margin selling and administrative expenses: Advertising expense Morrisey & Brown, Limited Income statements For the Three Months Ended September 30 Shipping expense salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income July 6,500 $ 650,000 390,000 260,000 Required 1 Required 2 Required 3 25,800 69,000 118,000 9,750 16,400 238,950 $ 21,050 Variable expenses: August 7,000 $ 700,000 420,000 280,000 Fixed expenses: 25,800 73,000 125,000 9,750 16,400 249,950 $ 30,050 Complete this question by entering your answers in the tabs below. Required: 1. By analyzing the data from the company's Income statements, classify each of its expenses…
The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,| 2019-2015. The firm's total assets at the end of 2017 were $400,000. An internal staff cost analyst has prepared the following financial data from the annual reports. You have been hired as a consultant to help analyze the financial position. 2019 2018 2017 2016 2015 Current Ratio 2.80 2.43 2.36 2.10 2.00 Acid Test Ratio 2.03 1.93 1.82 1.61 1.47 Days' Sales in Receivables Merchandise Inventory Turnover Debt Ratio 61 58 54 42 35 4.20 4.10 4.10 3.90 3.70 0.48 0.50 0.49 0.47 0.47 Times Interest Earned 4.60 4.80 5.90 5.70 6.00 Sales as a Percent of 1996 Sales 1.46 1.23 1.12 1.06 1.00 Net Income as a Percent of 1996 Income 1.31 1.20 1.10 1.06 1.00 Gross Profit Margin Operating Expenses to Net Sales Net Profit Margin 38.5% 38.8% 38.9% 40.0% 39.7% 11.4% 11.3% 11.5% 11.4% 11.7% 7.6% 8.6% 8.9% 9.4% 9.3% Return on Total Assets 9.4% 9.6% 9.6% 10.0% 10.7% Required: a. Explain the trend in liquidity.…
The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the final report: Net revenue Cost of goods sold Value of production materials on hand i Value of work-in-process inventory Value of finished goods on hand Inventory turnover ratio $365,000 316,000 42,500 a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.) Weeks of supply 41,000 14,500 11.2 per year b. Compute the weeks of supply (WS). (Do not round intermediate calculations: Round your answer to 1 decimal place.)
The information provided below was taken from the books of Uli Enterprise for the financial year ended 31 May 2018. Extract of statement of comprehensive income for the year ended 31 May 2018 R Sales 480 000 Cost of sales 240 000 Rent income 12 000 Advertising 4 800 Salaries and wages 72 000 Rates and taxes 1 200 Other operating expenses 96 000 Additional information: 1. All inventories are priced at cost plus 25%. 2. Sales are divided equally each month. Sales are expected to increase by 18% for the financial year ending 31 May 2019. 3. Fifty percent (50%) of the sales are for cash and the balance is on credit. Debtors normally pay their accounts as follows:  40% in the month of the sale, and these debtors are entitled to a 5% discount;  55% one month after the sale The balance is usually written off as bad debts. 4. Purchases for June and July are expected to be 20 000 per month. All purchases are for cash. 5. In terms of the lease agreement rent is received monthly. The rent for…
Required information [The following information applies to the questions displayed below.] Use the following selected account balances of Delray Manufacturing for the year ended December 31. Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods inventory, beginning Raw materials purchases. Direct labor Indirect labor Repairs-Factory equipment Rent cost of factory building Selling expenses General and administrative expenses Raw materials inventory, ending Work in process inventory, ending Finished goods inventory, ending $ 2,700,000 112,000 146,000 190,000 515,000 618,000. 93,000 74,000 148,000 237,000 379,000 134,000 175,000 228,000 Prepare an income statement for Delray Manufacturing (a manufacturer). Assume that its cost of goods manufactured is $1,397,00
q2: Junko Company manufactures financial calculators and produced 97,000 units during the year. The finished goods inventory was 1,260 units on January 1 and 1,040 units on December 31. The average unit cost is $118, what was the cost of goods manufactured and the cost of goods sold for the year? Please choose the correct option and show your calculation to validate your selection: A. $11,446,000 & $11,471,960 B. $10,839,680 & $11,446,000 C. $11,446,000 & $12,839,680 D. $10,888,240 & $11,446,000
A business has 2 grocery stores. Each grocery store is considered an investment center. Here are their performance statistics for February: Grocery Store Sales Net Income Average Invested Assets Alberta $100,000 $60,000 $500,000 San Andreas $150,000 $75,000 $600,000 Our company's target income level is 10% of average invested assets. What is the residual income for our Alberta store? *Round to dollars
Please help me to get answers with section
Blossom Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return (a) Retail Online Catalog $ $ Retail Stores Internet $ $10,120,000 4,070,000 4,570,000 8,070,000 12% $4,070,000 Residual Income. 1,620,000 1,120,000 4,070,000 12% Calculate the current residual income for each distribution channel. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Catalog Sales $3,400,000 1,920,000 1,320,000 1,610,000 12%