We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Assignment Example

Comments (0) Cite this document
Summary
Profit and Loss Statements Course Institution Instructor Date Student ID EH&S Consulting A profit and loss statement provides information on the profitability of a business. If expenses are more than income then the business has made a loss. On the other hand, if the income is greater than expenses the business has made a profit…
Download paper
GRAB THE BEST PAPER
Assignment
Read TextPreview

Extract of sample

s that EH&S earned income of $37,942. This consisted of $37,375 for consultancy which is its core business and $567 from photocopying. The business had total expenditure of $20,756 which includes non-cash expenses of $175 for depreciation on equipment. Although depreciation does not involve the movement of funds it represents a charge for the use of the asset. This charge should not be deducted for income tax purposes. However, the charge is reflective of the use of the asset in the company. The charge was calculated for two months based on a 5 year straight line method of depreciation. It is expected that the useful life of equipment which include a computer, fax machine and a copier will not be longer than 5 years. The Internal Revenue Service (2012) indicates that businesses must prorate depreciation deduction based on the months in use. The items of equipment were in use for 2 months and so the charge in the accounts is based on this fact. Other expenses of note include bad debt expense which includes write-offs as well as provisions made for debts that may not be collected. The two bills representing a total of approximately $11,000 and due from Delta Company is not collectible since the company is bankrupt. A total of 25% of the debt of $8000 (that is $2,000) due from Baker Company for consultancy fees and $763.86 for reimbursable are also not considered to be recoverable based on previous experience with the client. Additionally, $432.78 for costs may not be recovered from Charlie Company. These amounts have been included as a provision for doubtful debts and included in Bad debt expense. The total amount of bad and doubtful debts expensed represents 40 per cent of income. The company made a net profit of $15,686 which represents 41 per cent of total income. Depreciation of $175 will be added back to the net profit figure. Income tax has not been accounted for since the proprietor’s will include this profit when filing his personal income tax returns. This will be filed on the appropriate form for business proprietors. The tax paid by the proprietor is dependent on income from EH&S Consulting and other factors. Income tax returns are filed on a quarterly basis and so one is due for October 31, 2013 even though EH&S was in business for only 2 months. EH&S is in business to make a profit. One of the criteria for making this possible is effective and efficient management of debtors. EH&S has written off a large amount of debts for various reasons. In order to avoid the situation of writing off bad debts in the future EH&S should make a concerted effort by performing credit related checks on companies with which it hopes to do business. This should provide information on the risk attached to some companies and therefore assist in making the decision of whether to grant credit. Additionally, the company should have a credit limit and request a down payment before delivery of items. This would reduce the level of bad debt write-offs. The company could also obtain security for the debtor ... Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Assignment Example | Topics and Well Written Essays - 750 words - 12”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/103469-assignment
(Assignment Example | Topics and Well Written Essays - 750 Words - 12)
https://studentshare.net/finance-accounting/103469-assignment.
“Assignment Example | Topics and Well Written Essays - 750 Words - 12”, n.d. https://studentshare.net/finance-accounting/103469-assignment.
  • Cited: 0 times
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Assignment
With time, people have learnt the many benefits that globalization has brought, from the improvement of the relationship among countries to improvement of the transport sectors in various countries. It has enabled the development of countries that were termed as third-world and second-world ones to be of a higher level.
5 Pages(1250 words)Assignment
Assignment
Coping strategies differ with personal attributes, situational factors and availability of these strategies to expatriates. On this basis, authors have tried to determine how time of
3 Pages(750 words)Assignment
Assignment
Key Alternatives: Andreas can choose between to leave the job and hunt for a new job with similar position in other companies while looking after his family including children and parents. Or else he could
1 Pages(250 words)Assignment
Assignment
CEOs are not solely responsible for the company’s liabilities, since they are part of its staff. Thus, such CEOs should receive their full payment according to
1 Pages(250 words)Assignment
Assignment
Ryan is supposed to pay the Company because he had breached a contract. In respect of Restatement (Second) of Contract 241 (1981) clause the case has all elements of breach of contract. Mr. Ryan will have to pay the Company 10 % plus the
1 Pages(250 words)Assignment
ASSIGNMENT
tical risk arises from the fact that a sovereign country can change the “rules of the game” and the affected parties may not have effective recourse” (Eun and Resnick). The post of Susan is correct and she has also provided the definition of expropriation, which strongly
1 Pages(250 words)Assignment
Assignment
Molecules at S0, S1, and S2 have distinguishing characteristics. It can also be studied in an ESP spectroscopy. It involves electronically exciting and quenching a molecule. Polarization helps in identification of
1 Pages(250 words)Assignment
Assignment
From the two investment projects being considered by Canadian Metal Company, both have a positive net present value therefore in this case the investment that should be made is the one with a higher net present value which is the oil
1 Pages(250 words)Assignment
Assignment
" Issue: The legal question that was asked was whether Price Waterhouse had a valid reason for refusing Ann Hopkins a endorsement
1 Pages(250 words)Assignment
Assignment
may have cash tied in global sales hence increase the company’s borrowing base by considering the inventory and raw materials (Ambrose, Cheng & King, 2010). A good example is the Export-Import Bank of the United States, which is the official export credit bank in the U.S. Some
1 Pages(250 words)Assignment
Let us find you another Assignment on topic Assignment for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us