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Easy Limited Income Statement for the year ended 31 December 2006 |
||
|
|
2006 |
2005 |
|
|
£000 |
£000 |
Revenue |
9,000 |
6,000 |
|
Cost of Sales |
(3,000) |
(2,000) |
|
|
______ |
______ |
Gross profit |
6,000 |
4,000 |
|
Other operating income |
330
|
300 |
|
Distribution Costs |
(110)
|
(100) |
|
Administrative Expenses |
(2,365)
|
(2,150) |
|
Other Operating Expenses |
(55)
|
(50) |
|
|
_______ |
_______ |
|
Operating profit |
3,800
|
2000 |
|
Finance costs |
(380)
|
(200) |
|
|
_______ |
_______ |
|
Profit before tax |
3,420
|
1,800 |
|
Tax |
(1,020)
|
(540) |
|
|
_______ |
_______ |
Profit for the year |
2,400
|
1,260 |
|
|
====== |
====== |
|
|
|
|
Analysis
|
|
|
|
Gross profit
margin (gross profit/revenue) |
66% |
66% |
|
Operating
profit margin |
42%
|
33% |
|
Net profit
margin |
26%
|
21% |
|
Interest cover
(operating profit/finance costs) |
10 |
10 |
|
Sales growth
(9000/6000 – 1 x 100) |
50% |
50% |
Commentary: Sales growth has
been achieved due to increased marketing efforts. Profit margins have grown by negotiating with suppliers to keep costs under control.
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