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  • Profit and Loss Account For Hoggard For The Year Ending December 31st 2004

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    Yasir Zaman
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    Hoggard's profit for the year ending December 31, 2004 was £101,092. Gross profit was £238,900 with total expenses of £137,008, resulting in net profit of £101,092. Retained profits brought forward were £89,130 with retained profits carried forward of £190,222. Strauss had variances in materials and labor. Materials had a usage variance of £100 favorable and a price variance of £390 adverse, totaling £290 adverse. Labor had an efficiency variance of £50 favorable and a rate variance of £295 adverse, totaling £245 adverse. The cinema company analysis showed that if the Castle cinema closed, overall profit would fall

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    Hoggard's profit for the year ending December 31, 2004 was £101,092. Gross profit was £238,900 with total expenses of £137,008, resulting in net profit of £101,092. Retained profits brought forward were £89,130 with retained profits carried forward of £190,222. Strauss had variances in materials and labor. Materials had a usage variance of £100 favorable and a price variance of £390 adverse, totaling £290 adverse. Labor had an efficiency variance of £50 favorable and a rate variance of £295 adverse, totaling £245 adverse. The cinema company analysis showed that if the Castle cinema closed, overall profit would fall

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    41 views9 pages

    Profit and Loss Account For Hoggard For The Year Ending December 31st 2004

    Uploaded by

    Yasir Zaman
    Hoggard's profit for the year ending December 31, 2004 was £101,092. Gross profit was £238,900 with total expenses of £137,008, resulting in net profit of £101,092. Retained profits brought forward were £89,130 with retained profits carried forward of £190,222. Strauss had variances in materials and labor. Materials had a usage variance of £100 favorable and a price variance of £390 adverse, totaling £290 adverse. Labor had an efficiency variance of £50 favorable and a rate variance of £295 adverse, totaling £245 adverse. The cinema company analysis showed that if the Castle cinema closed, overall profit would fall

    Copyright:

    © All Rights Reserved
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    of 9

    Q1 - Hoggard

    Profit and Loss Account for Hoggard for the year ending December 31st 2004

    Sales 280000
    Returns -6000
    274000
    O. Stock 45000
    Purchases 42600
    Returns -1500
    86100
    C. stock 51000

    Cost of sales 35100

    Gross profit 238900

    Discounts allowed -2000


    Discounts received 1200
    238100
    Bad debts 560
    Doubtful debts -188
    Wages 108000
    Insurance 3200
    Heat & Light 6000
    Telephone 1400
    Advertising 4600
    Interest 1680
    Depreciation 11756
    137008
    Net Profit 101092
    Retained profits b/f 89130
    Retained profits c/f 190222
    Balance Sheet for Hoggard as at December 31st 2004

    Fixed Assets
    Land & Buildings 400000 80400 319600
    Motor Vehicles 70000 16986 53014
    372614

    Current Assets
    Stock 51000
    Debtors 12800
    provision for d/debts 512 12288
    Prepaid insurance 400
    63688

    Current Liabilities
    Creditors 9600
    Accrued interest 680
    Accrued heat & light 1600
    Overdraft 10200
    22080

    Working Capital 41608

    TA - CL 414222

    Loan 24000

    Net Assets 390222

    Financed by:
    Capital 200000
    Retained profits 190222
    390222
    Q2 - Strauss

    Standards: 210 units

    quantity per unit price Total


    Materials 2100 kg 10kg £2 per kg 4200
    Labour 630 hours 3 hrs £5 per hour 3150

    Actual: 200 units

    Materials 1950 kg 9.75kg £2.2 per kg 4290


    Labour 590 hours 2.8 hrs £5.5 per hour 3245

    Flexed: 200 units

    Materials 2000 kg 10kg £2 per kg 4000


    Labour 600 hours 3 hrs £5 per hour 3000

    Total Variances

    Materials 4290 - 4000 = 290 A


    Labour 3245 - 3000 = 245 A

    Principal Variances

    Materials:
    Usage (2000 kg - 1950 kg) * £2 100 F
    Price (£2 - £2.2) * 1950kg 390 A 290 A

    Labour:
    Efficiency (600 hrs - 590 hrs) * £5 50 F
    Rate (£5 - £5.5) * 590 hrs 295 A 245 A
    3
    Q3

    Ticket price £4
    Overheads 720000

    Palace ABC Castle Total


    Receipts (£) £1,600,000 £1,200,000 £800,000 £3,600,000
    Tickets sold 400,000 300,000 200,000 900,000
    Overheads apportioned £320,000 £240,000 £160,000 £720,000

    Costs:
    Film hire £500,000 £400,000 £390,000 £1,290,000
    Prime costs £300,000 £250,000 £160,000 £710,000
    Variable overheads £180,000 £160,000 £190,000 £530,000
    £980,000 £810,000 £740,000 £2,530,000

    Contribution £620,000 £390,000 £60,000 £1,070,000

    Profit £350,000

    If castle closed, lose £60,000 contribution so profit would fall to £290,000.00

    Palace ABC Castle


    Cont'n/ticket sale £1.55 £1.30 £0.30

    Margin of Safety
    B/even Rev Budget Rev Margin
    If Castle kept open £3,250,000 £3,600,000 £350,000
    If Castle closed £2,510,000 £2,800,000 £290,000

    v
    fixed costs increase 40000
    cont'n increase 30000 (100,000 more tickets at 0.30p contribution)
    loss -10000

    Increase in contribution does not cover the increase in fixed costs so not viable.
    Statement of Affairs for Harmison at 31st December 2003

    Premises 15000
    Other fixed assets 6900
    Stock 6450
    Debtors 6840
    Prepaid insurance 300
    Cash 3000
    Creditors -5300
    Accrued Gas -400
    32790

    Profit and Loss Account for Harmison for the year ending December 31st 2004

    Sales (54800+44900+6660-6840) 99520

    Opening stock 6450


    Purchases (50260-500+5990-5300) 50450
    Closing stock 7080
    49820
    Gross profit 49700

    Rates 4800
    Insurance (3900+300-350) 3850
    Wages 10410
    General expenses (3500-400+450) 3550
    Depreciation - van 4250
    Depreciation - other 924
    Bad debts 600
    28384
    Net profit 21316

    Balance Sheet for Harmison as at December 31st 2004


    Fixed Assets:
    Premises 15000
    Other fixed assets 26240 5174 21066
    36066
    Current Assets:
    Stock 7080
    Debtors 6060
    Prepaid Insurance 350
    13490
    Current Liabilities:
    Creditors 5990
    Overdraft 3510
    Accrued Gas 450
    9950
    3540
    39606

    Capital 38790
    Drawings 20500
    Profit 21316
    39606
    Q5
    Receipts & Payments

    Receipts:
    Members' subscriptions 2,100
    Donations 50
    Bar takings 5,245
    Raffle ticket sales 85
    Interest on deposit account 40
    7520
    Payments:
    Payments for bar supplies 1778
    Bar staff wages 526
    Repairs 104
    Purchase of equipment 590
    Raffle Prizes 48
    Rental payments 975
    4021
    Closing cash & bank 3499

    Income and Expenditure Account


    £ £
    Income
    Subscriptions 2,025
    Bar profit 2,878
    Raffle profit 37
    Donations 50
    Interest on deposit account 40
    5,030
    Expenditure
    Repairs 104
    Rent 745
    Depreciation on Equipment 148
    997
    Surplus of income over expenditure £4,033

    Balance Sheet
    Fixed Assets
    Equipment 590 148 442

    Current Assets
    Bar Stocks 142
    Debtors for Subscriptions 830
    Rent prepaid 230
    Deposit Account 1040
    Cash 2459
    4,701
    Current Liabilities
    Subscription Creditors 905
    Bar Creditors 205
    1,110
    Net Current Assets 3,591
    Net Assets £4,033

    Financed By:
    Surplus of income over expenditure £4,033

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