The Final Accounts of the Company
Essay Preview: The Final Accounts of the Company
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A brief commentary on the figures in the final accounts.
The final accounts of the company demonstrate that the company made strong progress.
According to the financial statements we can see that sales, profits and returns look very good.
From the profit and loss account we can see that the company made £28,505.80 sales and it had only £4,520 cast of sales, therefor we have a very good figure for the gross profit. All other expenses for the company are very low as well. For the company with the sales figure of £28,505.80 is not the problem at all to cover £6,682.40 expenses. Net profit figure is £1,3037.40, which is a very good one for the company with the total capital of £136,375.42.
From the balance sheet we can see that companys figure for the working capital looks very good, which is vital for such a small companys liquidity. Also, if we consider that the most of the companys capital is financed by the shareholders founds and it does not have any long-term borrowings at all, it is becoming obvious that the company is solvent.
The shareholders of the company will stay happy as they can expect high dividends to receive.
I believe these numbers also clearly show that the business has a very good chance for expanding and future development. Overall the company is performing well in profitability.
A brief critical appraisal of the Sage Line 50
The Sage Line 50 is one of the best accounting software in the world. It offers three-ledger accounting:
Sales
Purchase
Nominal
The sage line 50 has the various features such as profit and loss, balance sheets and budget reporting as well as VAT management, credit control and stock control. Finally, we can find there sales and purchase order processing and lots of other necessary things as well.
I find this accounting software very useful and easy to use. I think it helps accountants to save their time and make their job much easier.