ST's) Prepoved by ManuFractaving business. STt is Prepared 10 find Out COSt OF Products . Steps VD monufa Leaving we a Income statement BY S taXemenr OF Financial POSsiHon . Manuf roduving A/C : Aow $ Opening StOck OF phater 2a 1 (Rm) mx Row moteval purchase oe Cavv cage inworvd of Rm Purchase return of Ry Rmilosing stock OF AK Oivect moteviat OF material Consumed Oivect lobour/ woges ~ Divecs overhead Prime cost HW) Foctor Ovevhneud: _ Factor rent Bot) Solary TndrveGd muteviul Inderec+ wadge s Der? of hot hinev y AY OPening workin Qprosi C1OS%Y Work in ‘Scanned wih CamcannerIncome statement ae $ 3 6a\ CS oe Soles retare ws, wot sales fe. {[-l Cost Of SaleS Opening SHOCE of FruiShod go's Roe Purchase From MF Ave dx [1 Closing SoC kot Finished goods ee 4yvOoss protest Sob, 1 other ie Come 3 xx Rens received : Distouns received x od deny yecoveredt Decrease in Provision Total in com CO (lover head - oFF (ce arent Office Galan Dove on CAuiven ené Sntre ot Aavertisemen* CO ech toward Not prod Wwefere Odjustorent G)\ Factor y protec! a ONROIAES| unrealised prot, M4 Closing ynreolised Fv° het profit - ‘Scanned wih CamScannerSi okemern of MiiGanc anmeeet Hos 4 (dep) $ (nev) | Non Current Aosets land ond Duitding x x xx af Plant and Machinery ba mee ae Furn tare xy acd 2c Covvent Resets. Aosing Mvenrory BH Raw meter iu! x wove in progress Bt? Finigned goods x x C) Closing un veatised profit (x ¥/ Tvade receivable x*& casw a Bm, NG Provmard @xPperses xx Mmccured income Neds Total OSsets- Flhance by: Opening capital Neb profr4 frawing 1 iabi]} Non Current Ges 1M loan ‘Scanned wih CamcannerProvision for Unvealisod Prof ra AL xr | bal b/d Opening lin realised protrr Closi “8 unrealised proFry Joos fe Disadvantage OF Mhomutrattays & ATI’S SuyJective ve ( Factouy mg more complicate d= » Account > realises profr4 = already P > onvealised rors = Stock M Advantage xT help +0 meni iS a ‘Scanned with Comscanneroo —~ non ill A Mn ROM Profs maxing O¥gonizuti on Baer Sources OF income AW subscripnonsd Memborsnip fee Wwe es eet Q) Ordinary Subs Eripition b) life memborsnip Fe © (Ten (one year i amount 1S showr in income Sieisee™ AVN Gs exfendiure A/c nd Femoining — ig Srown \poloncesheed ) ay gonorien re eee Bordinay y vb) Special donation(1/ey donotion (675 ) BD Ancillary Gortivities (Mrome ) > Pee RON DYusiness by MOT profit we cofe, veStrony- etc. \IS ofoer rHcom ec > Rent receivod. > Profit ON Sales of Oo > Dismun + Yeceive: AcCoun 4149 T\ Receips C ‘Scanned wih ComcannerQyQeceips Gnd POYMie AF 3 vol vid x& [Rogment xe oe rex [Bp Coe vie 84S Rare bale sd Sea tL Statement ace! OS Income OF 4 $ XS 5Saies [1 (094 of sales i gtock Opens Ser Lt] Purcha s © ome t~) Closing stocle ross pretid cad ~ re) over? dt wet prof. ‘Scanned wih ComScannerAncome ond Oxpendduy e B/C @ (4) Income Prokid From amet) (eines a clivives Ordivovy Supsty (iho Over {HCOm ¢ ovdimary donat' wr ike memberahi fee for One yor Hoar Expenditure e De preCiation Rent ae Sao Solavy Other Oxpendiuve Suv bIUS( Defies ) ‘Scanned wih CamScanner e 6) arte Xx i po xX awkpe ule soroment ¢ oF Einanci ai Posi4ren - oe a Ls aaa = es Sees (1 Coot $(nery! g( Nev) Yon current ossets lona ond DUirdirgS Seas x xe os lows machi xe a Plonsd ond chiney x ie vewmices ae xv — peed? curve 4 Asset S Bonk SS (a6 Ts Heys 10 Find Cusy increa Se or Cosh decrease during currend yoay Steps | Dcagn from Opercting achvities Seed 10 be positive, if mot em We Con Consider khot Pusiness 15 Tunning out of cosh or mere 1S HOB Wauiacry Onda business will have Oe ee i475 day AChivit tes - Ae Yun g) Lash From Investing OchiviKces | Net investment .p(-ve) Sm OG) eae REMMRMIRAM A Vcc co Ok) eases Cost CRG ce Lecrnclo8y Grd mo grout | i BY cosh From Financing OCtiemtes | > cavitay ond borrowing kve ! Rood ® MOVE coVidal So HAA Ore i ceca WS Chon g @ Cosh pe ae ee OPErOATNS Progid « Gy Mon CaSh Ord HOA” Deen of Machine ‘Scanned with CamScannerAWcveaso im Cuveom Vabriities o de -) Decrease in curvend Voriitgie s (x yy Vor pai a Ax) Jotee st Pala Cay COSK From OP Erodiny Retivives (COA) xX Cash From invest a Sale Of NG6y-tuvvend Assets mo Purcnase OF hon-~Cuvend assets Cz) v r TACH NG +) One : ae Aens received ee {Se Intrest vocetvod : Cus Apso Invesiihy ochirtves (LETA ) freon Finonciar Oclividvec 3S Cash 3 iSsu C OF Snare [Both Preferance Gnd eras AO wentus Snare. 4 | Increase ih She premjun, hedinayfl 2 ial yucvensea 1H NON ~Gerveny Wool : VecveuSe §N NOn-wyvonk Ii Divided Hard ‘Scanned with CamscannerTyavestmens aperasoat AY ~~ - Sali,,\5 Wwe process of evauahng and onalysing ro e6 ous Numbe of 4g ye Caprar wvestrentd P 4 Oong +erm investment) Ganich gives yeturn Overy ear - >t nelp monoagenen* to Select west oliornative OF covitar investment - step 1) Ldenti Fico on of oltermativ es inflow ona cosh ouiflow of 2) Egti motion of cos Carn Olkevnoty es > aS Evaluation of each Ol¢@rnohve by upplying Aiffec and metmoeds \\] | | o) Tradtvtionay Metmod= Vy ACC OUnting, role of retdvn (ARC) Vi) Paybouk per.od (PP). ode apacean nome ty) Nex yresen> yolue a) Interna vore OF vetr Estimation of Co Cosh oviflow > > Calculor ‘Scanned wih Camscanner————— a p) Replacemen? oy add NeW Net Cosy Flow = Increase in Soles — TGHe cise Use - lo Change ola into new one. iA payment ang rote of veturs boensore AccCOuRN Prooresof Monae on vestments: calculate DESY xO +> Dees not consider dime value of MONE Formule b id of 4 y 100 nae -- Average net profs ee mvectnent eae Avevoge Pre 4 Cosh FIOW Totut dep? rola) ee no of years Vole ye toher © Average nek prof Dep reciatior per § eur nes presen? valu +» Difference init (ola ‘Scanned wih CamScannerF Poy buck period 3 when we inrhol Invest ment will be Mecoveced . SHH MUN Payot Perrod (s atcepted Poybuck peviod = minimum yeor t moun 10 lee Hever Bas amount Teceici Ome Net COSK Flow Curing te Yq Poypoce Pe Hod = Yoor upte negorive 4. Areent te see A Tonos Cos m Fee ee ducing te 4 Seer Advon tage . ath Wormple rocatculato @ ; Digadvamlage 4)00CSHO} Consider time volum Of MeneG | 1) 0©2€5 not Cons ‘sor netCosh Flow afte - Paybal Discounted poyoac ali a8 DUETS Came | Ge Wau” Period but sy \ Kscount rate Ond COmeider the tray oF Moneg Wet cash Flow Or Ocx] a ‘Scanned wih Comcannera Geov Neh casn Flow D'Stountea (erat. Presensy, Glug O (Xx) a (xx 4 1 xx ®x Ax Di xx a Xx 4 xxK xx Xx 4 xa RK xk Nev. > C Nes presens Yoluo) Decision = The Prosecy Novia POSitiVe cng grecter Ny 5 “Sually ACepted becouse only Ne lute deve 8S ney : : COnSidered nile te Process OF Mreameny a A Internat rate of veturn. wTt is hat Minimum vate OF YOhwn in which 7 Wi be 2@r0 MY Nor Preseny value will be to Alken NL Osten Ode Acad % Loving TRA greater than cosy of Capita) Formate, Toiernoy vote of veturn (I18)=Le 4 ee ES Where, ER=1 ower ve ‘Scanned wih CamScanner@ Budgetin aC, > Fulure Cowse of action OKpressed 14 ™MOnE tory tern Helps Lo Conavot @rPend ture >elys to allocate ana ulitic € * CSOW Geant hotse- Woy Ss —) Pelps 10 determine Sb ondard Yypes of most er budge + For monufractucmg . TSsotes budge t 2) Produttion budget 3\ Purchase budge + Ry Overneanad Padget 5) (95% buaged tor Wading ConCemay 1\ Soles budge 4 a) Purchase wtdge &. 3) Overneaa budget u\ Coos buaget # Sules judges Jan et Sale s(in unk) x Sales {in $ | x fi PYOdUuCAT ON Ud ‘Scanned wih CamScannerr ee db furchag © duagor For mfg pusthESs >: Jon Few Maw oh Apes] ot Ne Pv oduct ion unt eK * i L Om per unia “A xx Bi aL Pry fetus rod XX «> an a (1 Closing Store a bape XA xr ax ie TI OPeEring Stock Mm XA x on ay . —_ —~ae Pe aren AP Purchas @ Xx Ke x Ka RIM Purchase ling) Ye x og oe woe Foy trading Concern . . x x Sates i br xx Ae ~lov voLy" Hldwos, profi me Cost oF Soules xx SING Stor TOPE MING Shoe xx KX res Puwcrase [im Units) Tee Soa Purlhose in lor a eae ‘Scanned wih CamScannerA overnead budges on Fer Macey, ’ | NOMA rae en g Over head he ie fa office ond Admminigkciive oem SS sa ea Selting oma Aiswibuvon Overneaa BS ae See Total Overhece! a aaa a *# COSKH bu dge + Be Eero Maecy Cus vecer 2Svy_ Vie COT ” a x ess CUS ole > i ek Dentor -2 Sane Dentor” ? SP Rx T5$4e of Shave Sules OF assets | Otrer Income Tota vecep4 iA ‘Scanned with ComScannertw Wade yeceivaple ouager. Torn Feb bol bid Me aa HCVvedid Sales Xe we RE cei pt from debtor (~*1 (x) Vi Scount allowed Cxay bal Ca. OsKu Operating cycle Inventory Inventory Number of days of inventory = <————_1nventory___Invenitiry AEE : "Y = verage day's cost of goods sold — Cost of goods sold / 365 Accounts receivable __ Accounts receivable Number of days of = eee _ = vs of receivables =“ verage day’s sales on credit Sales on credit / 368 a Accounts payable Accounts payable : = Accounts payable 2 ACcouS BEYaEIE Number of days of payables = 7 206 day's purchases ~ Purchases / 365 . Note: Purchases = q Number of days | Number of days 0; - erating c¥cle = oF inventory * of receivables Number of days _ Number of days _Number of days _ Net operating ycle=" os inventory * of receivables of purchases a . Liquidity Current assets Current ratlo = Cirrent lablities Current assets - Inventory Quick ratio = “Current labiities [Net working capital to sales ratio = 3) ‘Scanned wih CamScannerNet income Net profit margin = ra a Sales 4. Activity Cost of goods sold Inventory turnover = ventory turnover = —Taventory Sales on credit Accounts receivable turnover = —————————_____ = — a Accounts receivable Sales Total asset turnover = ==" _ Total assets Sales Fixed asset turnover = "S$ Fixed assets fo ¥ Financial leverage io - otal debt, Total debt to assets ratio = —— ratio = a Long-term debt Long - te debt to assets = ng term debt to assets ratio = “B= Total debt Total debt to equity ratio = Totalshareholders’ equity Total assets Equity multiplier = <> arehoiders’ equity ‘Scanned wih CamScannerShareholder ratios Net income available to shareholders. Earnings per share = Number of shares outstanding Dividends paid to shareholders Dividends per share = ‘Number of shares outstanding Dividends Dividend payout ratio = Earnings Market price per share Earnings per share Price-earnings ratio = ~ — Return ratios Basic earning power ratio = Operating return Net income Return on assets = Total assets Return on equity = ‘Scanned wih CamScanner