Sample Profit and Loss Analysis Report

Profit and Loss – six months to Dec 18 - Sydney

Budget Actuals Variance (+/-)
Income:

Sales $450,000 $475,000 + 5%

Electricity and gas $1,500 $3,000 + 100%

Internet $1,000 $1,100 + 10%

Office supplies $700 $1,200 + 70%

Rent $225,000 $220,000 + 2%

Stationary $800 $1,300 + 62.5 %

Wages and salaries $115,000 $117,000 +1.7%

Superannuation $15,000 $16,000 + 6%

expense
Travel and $2,500 $2,700 + 8%
accommodation
Water $2,000 $2,600 + 30%

Work cover insurance $900 $900 0 variance

Total expense $363,400 $366,290

Net Profit $86,600 $108,710

Profit and Loss – six months to Dec 18 - Brisbane

Budget Actuals Variance (+/-)
Income:
+ 17 %
Sales $350,000 $410,000
Electricity and gas $1,200 $2,800 + 130%

Internet $1,100 $1,100 0 variance

Office supplies $650 $1,300 + 100%

Rent $185,000 $190,000 + 3%

Stationary $700 $1,250 + 78 %

Wages and salaries $115,000 $117,000 +1.7%

Superannuation $15,000 $16,000 + 6%

expense
Travel and $2,100 $2,300 + 5%
accommodation
Water $1,900 $2,100 + 22%

Work cover insurance $870 $870 0 variance

Total expense $323,520 $334,720

Net Profit $26,480 $75,280

BSBMGT517 - Profit and Loss Account Analysis and Report - Assessor V1.0.docx Page 1
© 2016 J&S Learning Work and Eduworks Resources
Performance for new Sydney and Brisbane sites – for first six months

Financial performance analysis

An analysis of the profit and loss accounts for both campuses show that profits are higher
than expected which is very pleasing.

The expected profit for the Sydney campus was forecast as $86,600, however, actual profit is
$108,710.

The expected profit for the Brisbane campus was forecast as $26,480, however, actual profit
is $75,280.

Brisbane is showing a higher profitability increase than Sydney although at this stage profits
generated by the Sydney campus are higher.

Variances
While an overall profit is show, some items of expenditure are significantly over an acceptable
10% variance.

These includes expenditure on electricity and gas (100% over budgeted cost), office supplies
(70% over budgeted cost), stationary (72.5% over budgeted cost) and water (30% over
budgeted cost).

Solutions to variances
High variances are shown in areas related to usage of resources. My recommendation is that
we send a memo or conduct staff training about economical and effective use of resources.

Approval for variance to Operational Plan

As both campuses have exceeded the expected number of enrolments, as evidenced by the
higher levels of profit, it is recommended that there be a variation to the original Operational
Plan in regards to the recruitment of staff. The existing Academic Manager does not have
time to manage all three campuses due to the large number of students. The
recommendation is to employ a further two Academic Managers to be employed at each of
the new campuses. Obviously this will increase costs but will make our operation more
effective.

BSBMGT517 - Profit and Loss Account Analysis and Report - Assessor V1.0.docx Page 2
© 2016 J&S Learning Work and Eduworks Resources