Professional Documents
Culture Documents
BY GHANENDRA FAGO
MBA, M PHIL
Objectives of financial statements
For the year ending Dec 31,2001 and 2002 Dollar and % Changes
Particulars 2001 2002 Dollars %
Sales revenues 600000 700000 100000 17%
Cost of goods sold 300000 340000 40000 13%
Gross Profit 300000 360000 60000 20%
Opeartiong expenses
Administrative expenses 150000 175000 25000 17%
Selling expenses 123000 152000 29000 24%
Total Operating expenses 273000 327000 54000 20%
Net operating income 27000 33000 6000 22%
Interest expenses 10000 13000 3000 30%
Income before taxes 17000 20000 3000 18%
Income taxes (40%) 6800 8000 1200 18%
Income after tax 10200 12000 1800 18%
Ratio Analysis for common Stockholders
A numbers of ratios can be computed to assess how well the
company is doing from the stand point of stock holders.
ratio