Here is the synopsis of our sample research paper on Chemalite Account Case Study. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 7 page paper examines a case study provided by the student and produces cash flow, income statements and balance sheets for the half year and full year. The bibliography cites 5 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEchemal.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
for the sale of 500,000 shares. Only 375,00 of these produced an income as the remaining 125,000 were given for a patent. This results in the following cash flow
Cash Transactions for the 6 months Income (share issue) 375,000 Outgoings Incorporation costs 7500 Building and machinery 62,500 Stock 75000 Total expenditure 145000
Income less expenditure 230,000 Question 2 Looking at the actual cash flow as shown in the six month statement there appears to be a skewed approach as no
sales have been made, but expenditure incurred, this appears to indicate a loss. This is shown below 1991 (6 months to June 30th) Sales Cost of Goods 75000
Gross Profit -75000 Depreciation (1) 7812 Misc. (incorporation costs) 7500 S,G and A 7500 22812 Operating Profit -97812 Interest 0 Minority interests 0 Other income
0 Pre-tax Income -97812 Taxes 0 Net Income -97812 Dividends 0 (1) Depreciation is assumed to be 25% ion a reducing balance (this could be reduced further
by changing it to 10% of the original cost in a straight line basis, as the machinery is projected at lasing 10 years). However, this is looking at
the income sheet on its own, if the balance sheet were prepared for the same period it wools also be seen that the majority of the expenditure has created assets.
IN this income sheet there is also the omission of capital expenditure as this is accented for in the assets and then written off though depreciation in order to comply
with the matching concept, matching the cost to the production. As this is only a six month statement there is only half a years allowance of deprecation allowed for.
...