CHAPTER 4 FINANCIAL ANILSIS
4.1 Profit and loss Account
Dream creation fabric design
Trading profit and loss a statement account.
For the year ended 31st December 2020
Table 6: profit and loss account
Item Amount shillings Amount shillings
Cash sale 5675000
Total sale 5675000
Cost of goods sold
Opening stock 1,400,000
Purchases 4,763,000
Loss closing stock <550,000>
Cost of goods sold 5,002,000
Gross profit 1,440,000
Operation
Salaries 1 wage 130,000
Rent 100,000
Electricity 50,000
Adv 3 promos 10,000
License & permits 17,000
Support service 20,000
Repair & 40,000
maintenance
Bank loan 10,000
Bank charges 4,000
Transport cost 100,000
Total operating cost 481,000
Net profit 959,000
4.2 Balance sheet
Dream creation fabric design
Balance sheet
For the year ending 31st December 2020
Table 7 Balance sheet
Item Amount shillings Amount Amount
Fixed Accets Cost Depreciation Net book value
Machines 150,000.00 150,000 135,000
Computer 35,000.00 3,500 31,500
Chairs 100,000 10,000 90,000
Total 285,000 28,000 256,500
Current
Assets
Stock 550,000
Cash at hand 40,000
Bank 164,525
Total 754,525
Total Assets 1,039,525
Current
liabilities
Creditors 142,000
Family ale 100,000
Bank loan 135,000
Total 377,000
Financed by
owner 200,000
equity
Add retained
earning 217,000
Total capital 1,039,525
investment
4.3 Cash flow forecast
Dream creation fabric design
Cash flow forecast
For the year ended 2022-2023
Oct Nov Dec Jan Feb mar Apri Ma June July Aug sept Total
202 2023 ch l y
2
ksh Ksh ksh ksh ksh ksh ksh ksh ksh ksh ksh ksh ksh
Recei
pts
Cash 550, 550, 550, 550, 550, 550, 550, 550 550,0 550, 550, 550, 6,600
collec 000 000 000 000 000 000 000 ,00 0 000 000 000 ,000
tion 0
Bank 1,20 1,20 2,400
inter 0 0
est
Own 19,5 22,0 43,50
er 00 00 0
Total 569, 550, 550, 550, 575, 550, 550, 550 550,0 551, 550, 550, 6,645
inflo 500 000 000 000 200 000 000 ,00 00 200 000 000 ,900
w out 0
flow
Audit 20,0 20,0 40,00
cost 00 00 0
Mate 250, 250, 250, 250, 250, 200, 200, 200 200,0 190, 190, 190, 2,620
rial 000 000 000 000 000 000 000 ,00 00 000 000 000 ,000
purch 0
ase
Salari 26,0 26,0 26,0 26,0 26,0 26,0 26,0 26, 26,00 26,0 26,0 26,0 312,0
es 00 00 00 00 00 00 00 000 0 00 00 00 00
&wag
e
Rent 20,0 20,0 20,0 20,0 20,0 20,0 20,0 20, 20,00 20,0 20,0 20,0 240,0
00 00 00 00 00 00 00 000 0 00 00 00 00
Electr 3,00 3,00 3,00 3,00 300 300 300 300 3000 300 300 300 3600
icity 0 0 0 0 0 0 0 0 0 0 0 0
Adv 102 102 102 1025 102 102 102 102 1025 102 102 102 1230
& 5 5 5 5 5 5 5 5 5 5 0
prom
os
Local 700 700 700 7000 700 700 700 700 7000 700 700 700 8400
travel 0 0 0 0 0 0 0 0 0 0 0
Tele 110 110 110 1100 110 110 110 110 1100 110 110 110 1135
& 0 0 0 0 0 0 0 0 0 0 0
posta
ge
Bank 150 150 150 1350 160 135 130 150 1400 140 140 140 1730
charg 0 0 0 0 0 0 0 0 0 0 0
es
Licen 155 155 155 1550 155 155 155 155 1550 155 155 155 1860
se & 0 0 0 0 0 0 0 0 0 0 0
perm
it
Insur 195 170 1700 5350
ance 00 00 0 0
Total 330 311 311 3427 808 807 979 978 2507 250 250 2393
675 175 025 5 25 75 25 75 75 775 775 875
Cash 200 884 823 3426 836 836 385 110 1200 140 161 161 5768
from 910 25 9 725 25 25 11 00 0 00 00 00 02
op
Balan 255 320 3452 365 389 506 567 8963 902 100 121 7131
ce 74 81 7 24 96 71 81 5 20 126 482 81
Perso 331 331 331 3310 331 331 331 331 3310 331 331 331 3972
nal 00 00 00 0 00 00 00 00 0 00 00 00 00
Exp
Balan 255 320 345 3652 389 506 567 896 9022 100 121 6766
ce 7 8 27 4 96 71 81 75 0 126 482 57
