THE ULTIMATE INCOME STATEMENT/PROFIT AND LOSS TEMPLATE Company XYZ Income statement for the year ended

xx/xx/xx Revenue/Sales/Turnover Less Cost of Sales: Opening Stock x Add Purchases x Add Carriage In x Less Closing Stock (x)

xx

Other income (proceeds from the sale of fixed assets) Gross Profit Distribution Costs: Advertising Carriage Outwards Bad debt written off Provision for doubtful/bad debts Discount allowed Motor Expenses Depreciation Profit/Losses on disposal Administrative Costs: Auditors' fees and expenses Discount received Director's renumeration Office Salaries Rent and Rates Light and Heat Telephone Postage Other Expenses Finance Costs: Debenture Interest Preference Dividend Profit before tax Corporation tax Profit after tax Less Dividends Retained profit for the year

(x) xx xx xx x x x x x x x x x x x x x x x x x x x (x) xx (x) xx (xx) xxx

NOTE: Provision value is only the change in the provision from the previous accounting period NOTE: Depreciation value recorded is only the depreciation for that accouting period NOTE: need to factor in accruals and prepayments into the values entered. Accruals increase expenses and prepayments reduce expenses

Company XYZ Balance Sheet(Standard of Financial Position) as at XX/XX/XX Cost Accumulated Depreciation Fixed Assets Machinery x x Plant etc x x x x Current Assets Stock Debtors Less Provision for doubtful debts Prepayments Listed Investments Cash Bank Less Current Liabilities Creditors Accruals Net Current Assets Total Net Assets Capital Opening Balance Add Net profit Less Drawings Closing Balance

Net Book Value x x x

x x x x x x x x xxx x x x xxx xxx

x x x x xxx

These values should be the same!

Company XYZ Balance Sheet as at XX/XX/XX Cost Accumulated Depreciation ASSETS Non-current assets Plant and Machinery Motor Cars

Net Book Value

x x x

x x x

x x xxx

Current Assets Stock Trade receivables Less Provision for doubtful debts Prepayments Listed Investments Cash Bank TOTAL ASSETS EQUITY AND LIABILITIES Equity Share Capital Share Premium Retained Earnings General Reserve Revaluation Reservce Total Equity Non-current Liabilities Prefence shares Debentures Total non-current liabilities Current Liabilities Trade payables Bank overdraft Tax Payable Accruals Total current Liabilities TOTAL EQUITY AND LIABILITIES

x x x xx x x x x xxx xxx

x x xxx

x x x x xxx xxx

These values should be the same!

x x x x x xxx

These values should be the same!

Preparation of a cash flow statement in accordance with FRS 1 Company XYZ Cash flow statement for the year to xx/xx/xx Net cash inflow from operating activities xxx Returns on investments and servicing of finance Investment income Dividents paid to preference shareholders Interest paid (x) Taxation (x) Capital Expenditure Payments to acquire tangible fixed assets (x) Equity dividends paid (ordinary shareholders) (x) xxx Management of liquid resources and financing Issue of debenture stock xx Increase in cash xx

1 Reconciliation of operating profit to net cash inflow from operating activities Operating profit xxx Depreciation (difference between the two years) xxx (Increase) in stocks (xx) (Increase) in debtors (xx) Increase in trade creditors xx Net cash inflow from operating activities xxx

Preparation of cash flow statement IAS 7 Company XYZ Statement of cash flows for the year ended xx/xx/xxx Cash flows from operating activities Profit before tax Adjustments for: Depreciation charges Interest received Debenture Interest Paid Loss on disposal of non current assets Provision for bad and doubtful debts (decrease) Operating profit before working capital changes Increase in inventory Decrease in trade receivables Decrease in trade payables Cash generated from operations Corporation tax Net cash inflow from operating activities Cash flows from investing activities Receipts from sales of tangible non-current assets Net cash from investing activities Cash flows from financing activities Issues of share capital Repayment of debentures Debenture interest paid Dividends paid Net cash used in financing activities Net cash in cash and cash equivalents Cash at the beginning of the period Cash and cash equivalents at the end of period ^ this value should be the same as the cash at bank entry in the b/s. ('000s) xxx xxx (xxx) xxx xxx (xxx) xxx (xxx) xxx (xxx) xxx (xxx) xxx

xxx xxx

xxx (xxx) (xxx) (xxx) xxx xxx xxx xxx