Running head: BOOKIN FINANCIAL REPORT

BookIn Financial Report

Name

School Affiliation

Date
 BOOKIN FINANCIAL REPORT 2

The balance sheet indicates assets, liabilities and owners’ equity of an entity. It indicates

the financial position of the organization at the end of a fiscal period. BookIn balance sheet

indicates that the entity assets are mainly office equipment which consists of 88.5% of total

asset, accounts receivables, and cash. Assets marginally increase through the four years under

consideration from $46,620,000 in the first year to $64,795,000 in the fourth year which is an

average yearly increase of 9.75%. The entity is highly geared with a ratio of more than 80.7% in

the first year. This means that most of its assets were acquired through long-term debts and notes

payable. It’s also notable that the organization is not financed by owners’ equity. Accounts

payable increased from $3,258 in year one to $4,729 in the fourth year. An increase in net

income is also realized by the entity as it earned $5,732 in the first year and increased with an

average of 32% per year to $13,131 in the fourth year. Total Liability increased from $46,620 in

the first year to $64,795 in the fourth year. In the first year, BookIn had a current ratio of 2 which

is impressive as it’s able to meet its current obligation easily if and when it arises.

Revenue collected in the income statement increases from $18,844 in the first year to

$23,122 in the second, $30,723 in the third year and $40,460 in the fourth year. This marks an

average yearly increase of 28.6%. Cost of goods sold also increases through the four years as

direct labor increase from $3,624 in year one to $7,781 in year four while Sales and marketing

increases to $4,669 in the fourth year from $2,174 in the first year. The profit margin of the

entity in the first year is 69%. Total operating expenses also increase from $2,624 in the first

year to $4,137 in the fourth year. EBITDA and EBIT also increased with a yearly average of

32.2% from the first year to the fourth year as EBITDA in the first year was $10,422 and in the

last year was $23,874 while EBIT had increased from $8,859 to $20,293.
 BOOKIN FINANCIAL REPORT 3

Statement of cash flow shows how changes in the balance sheet and income statement

affect cash and cash equivalent in each financial year. The main elements in BookIn’s cash flow

statement are net income, non-cash items and changes in working capital. Both elements increase

gradually in the four years under consideration as no-cash items increases from $1,572 in the

first year to $3,100 in the fourth year while changes in working capital increased to $42,250 in

the last year from $3,205 in the first year. These affects total operating activities as it also

increases from $10,509 in year one to $20,481 in year four. The cash balance at year-end also

increases through the years under consideration from $1,329 in the first year to $48,811 in the

last year.

Staffing statement shows the salaries that BookIn pays to its employees annually. The

organization has six main departments each having one staff except editing department that has

six employees. Salaries of all the staff members remain the same in the four years under

consideration as the entity has an annual wage bill of $615,495 with the editors’ wages

consisting of 53% of the wage bill at $330,750. The CEO is the highest rewarded staff with an

annual salary of $75,160 followed by the accounting officer with $68,160 while the customer

care agent was the least paid employee at $30,554 annually.