It is the end of the financial year and you are required to produce a management accountant’s
report to be given to the company’s Chief Financial Officer (CFO). The table below shows the
budgeted and actual sales for the year:
Oct-
19
Nov-
19
Dec-
19
Jan-
20
Feb-
20
Mar-
20
Apr-
20
May-
20
Jun-
20
Jul-
20
Aug-
20
Sep-
20
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Budgeted
Sales 354 390 429 472 519 571 628 690 759 835 919 1,011
Actual
Sales 375 421 497 562 712 150 180 242 523 715 894 1,256
Based on the budget/actual figures, create a set of costs for the company and create a
Statement of Profit/Loss (P/L). The line items to include are:
• Sales
• Direct Materials
• Direct Labour
• Variable Overheads
• Fixed Overheads
• Gross Profit
• Administration Costs
• Distribution Costs
• Selling Costs
• Operating Profit
• Finance Costs
• Profit Before Tax (PBT)
• Tax (10% of PBT)
• Profit After Tax
You are also required to produce a budget and actual Statement of Financial Position (SOFP).
You are to create these values, but ensure you include the following line items:
• Land & Buildings, Plant & Machinery, Cash, Receivables, Inventory, Prepayments,
Accrued Income, Share Capital, Retained Earnings, Long-term Bank Loan,
Payables, Accruals
• The following headings must be used:
• NON-CURRENT ASSETS, CURRENT ASSETS, TOTAL ASSETS, EQUITY, NON-
CURRENT LIABILITIES, CURRENT LIABILITIES, TOTAL EQUITY AND LIABILITIES
• Ensure that your SOFP balances (i.e. total assets = total equity and liabilities)
