The cost of sales in Tesco plc was £58,519m in 2012 to £60,737m in 2013. This indicates that the suppliers have increased their prices up in 2013 than in 2012 as the prices have increased by £2218m in 2013.
The Gross profit is the company's remaining profit after selling a product or service and deducting the cost related with its production and sale. For example Tesco plc has an overall gross profit of £4,089m in 2012, and in 2013 they made £737m, this is from selling their products from remaining profit.
The gross profit in Tesco plc in 2013 was £4,089m and in 2012 it was £5,397m this indicates that Tesco plc made more gross profit in 2012 than in 2013. This is could be because Tesco plc could be losing their customer and not getting more profit than before as they have in 2012.
The Expenses is the regular outgoings of finance for the organisation such as spending money on recruitment, staff, bills etc. Tesco plc has an overall expense of £1,562m in 52 weeks in 2012/2013. This indicates that the expense is used to pay for running cost that is beneficial for the organisation.
The expenses in Tesco plc in 2013 was £1,562m and in 2012 Tesco plc’s was £1,612m this shows that in 2013 Tesco plc has decreased the amount of recruitment and employees Than in 2012, this is because the expenses have decreased by £150m.
The Net profit is the overall of the loss and profit taken into account on the balance sheet, for example Tesco plc’s net profit is £120m for the year, and this indicates the net profit gives an overall amount of money they have made in the organisation after all cost covered.
The net profit in 2013 has decreased than in 2012 for example Tesco plc’s net profit was £120m and in 2012 Tesco plc’s net profit was £2,814m. This shows that in 2013 Tesco plc has made less profit in 2013 than in 2012 for example Tesco plc have a cost of sales was from £58,519m in 2012 to £60,737m in 2013. This shows that the suppliers have increased their prices up.
Balance sheet
A balance sheet is a statement of the total assets and liabilities of an organisation at a particular date the balance sheet is split into two parts:
(1) A statement of fixed assets, current assets and the liabilities (Net Assets)
(2) A statement showing how the Net Assets have been financed, for example through share capital and retained profits.
The Current assets is a balance sheet account that represents the value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business. Current assets include cash, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash.
The balance sheet of Tesco plc’s current assets (including liabilities of the disposal group and non-current assets classified as held for sale) in 2013 Tesco plc had (£18,985m), however in 2012 Tesco plc had less money than in 2012 for example they spent (£19,249m), their current assets declined by £264m in a 2012. This indicates that Tesco plc spent less money on their current assets in 2013 than in 2012.
A current liability is a company's debts or obligations that are due within one year. Current liabilities appear on the company's balance sheet and include short term debt, accounts payable, accrued liabilities and other debts.
The current liabilities (including liabilities of the disposal group classified as held for sales) on Tesco plc’s balance sheet show the amount of debt that they owe to other companies. For example Tesco plc owed £18,985m in 2013 and in 2012 Tesco plc owed £19,249m. This indicates Tesco plc owed companies more in 2012 than in 2013 because of the less borrowing they have done in 2012 by £264m.
Non-current liability is a liability that would not be paid within 12 months. Non-current liabilities are also called long-term liabilities, this mostly from bank loans. Non-current liabilities are shown on the right wing of the balance sheet representing the sources of funds, which are generally bounded in form of capital assets.
The non-current liability on Tesco plc’s balance sheet in 2013, Tesco had £14,483m outstanding debt paid, however in 2012 Tesco plc had debt of £13,731m, which shows that Tesco plc borrowed more money from banks in 2013, by £752 thousand.
Equity is the amount of money shareholder get in return in the organisation. The equity in Tesco plc shows the amount the shareholder would receive after investing in to Tesco plc and paying off debt in Tesco plc for example Tesco plc total equity in 2013 is £16,643 million. However in 2012 the shareholder had 17,801million. This indicates that the shareholder didn’t get more money in 2013 than in 2012.
In conclusion, Tesco plc.’s income statement and balance sheet has gone from good to bad. For example in 2012 Tesco plc had more gross profit and less cost of sales in 2012, but in 2013 Tesco plc had less gross profit and more cost of sales on their income statement, this indicates that in 2013 Tesco plc didn’t perform well as in the 2013, but performed a lot better in 2012. The balance sheet is the same from the income statement in some ways for example, Tesco plc’s non-current liabilities were £14,483 million in 2013 but in 2012 it was £13,731million. This shows that Tesco plc borrowed a lot more in 2013 than in 2012, which could mean that Tesco plc were trying to increase their finance more.
by
serhad123456hotmailcom (student)
