1 a to satisfy the qualitative characteristic of understandability, providing a graph makes the information easier to read, therefo

2 it is valuable because it allows reader to interput the financial information much more easier than looking at a whole report

3 it's due to inflation rate, price of things often go up, like wages and cost price, but the net profit don't always increase
mation easier to read, therefore allowing users can understand the data much more eaier

n looking at a whole report

don't always increase

VCE Accounting Units 3 and 4 Student CD Exercise 11.8

Chapter 20 Exercise 1 - Income statement

SOUTH YARRA BOOKS: Income statement for year ended 31 March 202

Revenue $ $
cash sales 85000
credit sales 18000 103000
less: sales return 2000 101000
less Cost of goods sold
cost of sales 45000

x x
x x 45000
Gross profit 56000
less inventory loss 1300
Adjusted gross profit 54700
plus Other revenue
x x
0
less Expenses
advertising 2000
Postage expense 800
wages-sales assistant 25000
interest expense 1200
insurance 1000
x x
x x
x x 30000
Net profit 24700
b advertising and wages

For use in conjunction with:

VCE Accounting Units 3 and 4, fourth edition 3 of 33
© Neville Box 2006, published by Macmillan Education Australia
 VCE Accounting Units 3 and 4 Student CD Exercise 11.8

ded 31 March 2023

For use in conjunction with:

VCE Accounting Units 3 and 4, fourth edition 4 of 33
© Neville Box 2006, published by Macmillan Education Australia
Chapter 20 Exercise 2 - Income statement

ESSENDON SPORTS STORE: Income statement for year ended 31 August

Revenue $ $
cash sales 95400
credit sales 34000 129400
less sales return 1400 128000
less Cost of goods sold
cost of sales 58600
x x
x x
x x 58600
Gross profit 69400
less inventory loss 2400
Adjusted gross profit 67000
plus Other revenue
x x
0
less Expenses
rent 35000
office expense 3400
interest on loan 1200
casual wages 18800
x x
x x
x x
x x 58400
Net profit 8600
ar ended 31 August 2023

8600/128000x100= 6.71875 from the net profit margin we could see the business is doing unsatisfactory, the ability

capital, loan, GST collected, laptop computer, GST paid, Drawing,

ng unsatisfactory, the ability of the business controling their expense is poorly done
Chapter 20 Exercise 3 - Income statement and balance sheet extract

BIG BARDA'S BOUTIQUE: Income statement for quarter ended 30 Septemb

Revenue $ $
cash sales 24000
credit sales 12100 36100

less Cost of goods sold

cost of good sold 17200
cartage inwards 640

x x 17840
Gross profit 18260
less x 0
Adjusted gross profit 18260
plus Other revenue
inventory gain 700
18960
less Expenses
bad debt 430
stationery expense 860
electricity expense 340
council rates 580
advertising 1320
vehicle expense 540
cartage outwards 340
x x 4410
Net profit 14550
sheet extract

er ended 30 September 2023

Chapter 20 Exercise 3 - Income statement and balance sheet extract

BIG BARDA'S BOUTIQUE: Balance sheet as at 30 September 2023

Current assets Current liabilities

cash at bank x
inventory loan
x x x x
x x x x
x x 0x x

Non-current liabilities
Non-current assets x
x x
x x Owners equity
x x Capital 34000
x x plus: Net profit 14550
x x 0 48550
less: Drawings 4300
0
eet extract

ber 2023

44250
44250
Chapter 20 Exercise 4 - Income statement and balance sheet extract

LASER FX LIGHTING STORE: Income statement for year ended 30 June 20

Revenue $ $
sales 112000
x x 112000
less sales return 1400 110600
less Cost of goods sold
cost of sales 47600
cartage in 1250

x x 48850
Gross profit 61750
less inventory loss 1800
Adjusted gross profit 59950
plus Other revenue
x x
0
less Expenses
interest on loans 980
accounting costs 540
wages 17000
cleaning 940
rates 1230
telephone expense 620
insurance 570
carry bag 680
rent 20000
postage 450 43010
Net profit 16940
sheet extract

ar ended 30 June 2023

Chapter 20 Exercise 4 - Income statement and balance sheet extract

LASER FX LIGHTING STORE: Balance sheet as at 30 June 2023

Current assets Current liabilities

x x
x x
x x
x x
x x
x x
x x
x x
x x
0x x

Non-current liabilities
Non-current assets x
x x
x x Owners equity
x x Capital, consider that 32000
x x plus: Net profit 16940
x x 0 48940
less: Drawings 4300
0

c the 76640/2=38320 16940/38320=44.2%, this shows for every dollar the own
eet extract

44640
44640

ery dollar the owner invested, there is 44cent return

a the net profit is 27500
b 27500/125000= 22%
c it shows the amount of sales dollar remaining after covering the expenses, from the data shown, the business failing to contro
d 27490
expense
cost of sal 56250 5625
wages 31250 10000 0 exercise 5
office exp 10000
net profit 27490 31250

cost of sales wages

office expense net profit
e
expense expense
cost of sal 56250 60000
wages 31250
50000
office exp 10000
40000
30000
20000
10000
0
cost of sales wages office expense
n, the business failing to control their expense, the owner needs to think of way to improve their expense
exercise 6
net profit net profit margin
year 1 56000 35.00%
year 2 52080 28.90%
year 3 46600 23.30%

the business net profit margin of the business has declined, which showed the business is making less profit or they are having

d year 1 year 2 year 3

cash sales 120000 132000 138000
credit sale 40000 48000 62000

year 1 year 2 year 3

cash sales credit sales

cash sales credit sales cash sales credit sales

Chart Title
e
year 1 year 2 year 3 450000
cash sales 120000 132000 138000 400000
credit sale 40000 48000 62000
350000
cost of sal 80000 93600 111000
sales staff 18000 23760 26600 300000
bad debt 1000 1500 3000 250000
advertising 5000 9060 12800 200000
150000
100000
50000
0
cash sales credit sales cost of sales sales staff bad debt advertising
wages

year 1 year 2 year 3

 year 3
cash sales 138000
g less profit or they are having problem to control their expense credit sale 62000

year 2
cash sales 132000
credit sale 48000

it sales

staff bad debt advertising

ges

r3
 dangenongcranbourne furniture
net profit 55200 56000
capital at 1 220000 210000
capital at 240000 190000

a 24% 28%

b the owner of cranbourne funiture has a better return

c industry avarage, previous result, expected result (budget)

 2021 2022 2023
sales reve 18000 16000 20000
net profit 27000 28800 30000
capital ( sta 96000 100000 110000
capital ( en 100000 110000 120000

net proifit 66% 55% 66%

return of o 27.50% 15.23% 26%
Chapter 20 Exercise 9 - Income statement and return on owner's investme

PASCOE VALE COLLECTABLES: Income statement for year ended 30 Sep

Revenue $ $
cash sales 65000
credit sales 32900 97900
less sales return 1400 96500
less Cost of goods sold
cost of sales 43260
cartage inwards 910
customs duty 1280
x x 45450
Gross profit 51050
less inventory loss 2140
Adjusted gross profit 48910
plus Other revenue
0
48910
less Expenses
cartage outwards 1210
shop rent 22000
bad debt 1270
advertising 1230
interest paid 2190
part time wages 8250
sercurity costs 3760
x x 39910
Net profit 9000
n owner's investment

r year ended 30 September 2023

Chapter 20 Exercise 9 - Income statement and return on owner's investme

PASCOE VALUE COLLECTABLES: Balance sheet as at 30 September 2023

Current assets Current liabilities

x x
x x
x x
x x
x x
x x
x x
x x
x x
0x x

Non-current liabilities
Non-current assets x
x x
x x Owners equity
x x Capital 43000
x x plus: Net profit 9000
x x 0 52000
less: Drawings 9830
0

9c 9000/42585 = 21.13%
wner's investment

September 2023

42170
42170
Chapter 20 Exercise 10 - Income statement and financial indicators

ALTONA AUTO PARTS: Income statement for year ended 31 March 2023

Revenue $ $
credit sales 68600
cash sales 89100 157700
less sales return 2400 155300
less Cost of goods sold
cost of sales 63400
cartage inwards 2100
buying expenses 1200
x x 66700
Gross profit 88600
less inventory loss 800 800
Adjusted gross profit 87800
plus Other revenue
x 0
87800
less Expenses
wages - shop assistant 24300
interest on loan 2300
promotional expenses 3200
delivery costs to customers 2400
salary - receptionist 27000
postage & telephone 1240
shop mintenance 5400
heating & lighting 1320 67160
Net profit 20640
al indicators

ed 31 March 2023

a`

b 20640/155300= 0.132 x 100= 13.2%

45700 + 20640= 66340

c 20640/56020 =0.3684 x100= 36.84%
Chapter 20 Case study

FASHION FORWARD: Statement of receipts and payments for the year ended 3
$
Cash receipts

0
Less: Cash payments

0
Excess of receipts over payments
Bank balance (1 October 2022)
Bank balance (31 September 2023)
ments for the year ended 30 September 2023
$

0
Chapter 20 Case study

FASHION FORWARD: Income statement for year ended 30 September 2023

Revenue $ $
x x
x x 0

less Cost of goods sold

x x
x x
x x
x x 0
Gross profit 0
less x x
Adjusted gross profit #VALUE!
plus Other revenue
x x
#VALUE!
less Expenses
x x
x x
x x
x x
x x
x x
x x
x x 0
Net profit #VALUE!
d 30 September 2023
Chapter 20 Case study

FASHION FORWARD: Balance sheet as at 30 September 2023

Current assets Current liabilities

x x
x x
x x
x x
x x
x x
x x
x x
x x
0x x

Non-current liabilities
Non-current assets x
x x
x x Owners equity
x x Capital x
x x plus: Net profit x
x x 0 #VALUE!
less: Drawings x
0
 0

#VALUE!
#VALUE!