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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