Describe the performance of a selected business by its trading, prot and loss, appropriation accounts and balance sheet.

Authors Avatar by ellouise1997hotmailcom (student)

Abscon Ltd owns a large TV and DVD player shop in Scotland. The company also has a servicing and repairs department. The Malcorn family, who own the business, decided to expand and open a new store in Coventry where they would lease premises in the shopping centre. Abscon Ltd would like to obtain a loan worth £100,000 to finance this development. I will write a report, identifying their improvements made in their financial statements.

I have identified the following improvements from their Trading, Profit and Loss and Appropriation Statement from 2013 to 2014:

Firstly, Abscon Ltd.’s turnover has increased by £200,000 from £1.3million in 2013 to £1.5million in 2014. This represents an increase of 15.38%. The business has done really well in increasing their sales.

Furthermore, their gross profit has improved by £130,000. This has increased from £510,000 from 2013 to £640,000 in 2014. This is a 25.49% increase.
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Additionally, administration expenses have decreased by £10,000 from £140,000 in 2013 to £130,000 in 2014. This is a 7.14% improvement.

Their operating profit has improved drastically. It has increased by £120,000 from a loss of £20,000 in 2013 to a profit of £100,000 in 2014; this represents a 600% increase.

Also their profit before taxation has increased by £120,000. This has increased from a loss of £30,000 in 2013 to a profit of £90,000 in 2014. This is a 400% improvement.

Moreover, their profit after taxation has improved. It has increased by ...

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