B120 Tma03

B120 TMA03

Part I
oral sex 1
a) The income statements purpose is to show the financial arrangement of a business by assessing its incomings and outgoings over a wedded period of time. The problem that arises from this statement in relation to condition Labels is that this business has to purchase its merchandise well in enkindle of each season. This means that there will always be a significant amount held in as secures.
b) I respect that although sales were down in 2012, the figure in similitude isnt such a super drop and the gross gather remains at a similar level to the earlier year. I am concerned by the large derail in total expenses for the year 2012 and I see that although the legal age of these totals have dropped, the ones that have increased have been by large amounts in the areas of reinforcement and salary, maintenance and depreciation. These are all be that are likely to increase again in the pursuance year. I would be questioning whether the £60,000 rise in wages bill was due to recruitment of more staff or was it a general pay rise that will be repeated the following year?
The second point I would look further into is how did the maintenance cost double? Again, is this a one off or a trend that is set to continue?
Thirdly, I would look at the level of depreciation.



wherefore has that jumped up and is this estimated to remain at this rate and for how long?
Question 2
a) The purpose of a balance sheet is to provide a financial snapshot of the business and is focused on a event point in time. It provides a more exposit insight into the assets and liabilities held by that business. It is useful to study in this scenario as it will give information to Kathryn most the equity possess by the business and therefore its value at that particular time.
b) Although the equity figure as of 30th April increased by over £13,000 from the year 2011 to 2012 I would be concerned about the net profit for the latter year.
In 2011 the capital as at 1st May was a...If you want to get a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .