Finance
Changes on the balance sheet and income statement items
| ECDK BALANCE SHEET FOR THE YEAR ENDED 0000 | |||||||
| Assets | year 1 | year 2 | Change | Liabilities | year 1 | year 2 | Change |
| Current Assets | 1250 | 2100 | 850 | Current Liabilities | 750 | 620 | -130 |
| Fixed Assets | 5500 | 4820 | -680 | Long Term Liabilities | 4800 | 5700 | 900 |
| Total Assets | 6750 | 6920 | 170 | Total Liabilities | 5550 | 6320 | 770 |
| owners’ Equity | 7200 | 7500 | 300 | ||||
| Total of owners’ Equity and liabilities | 12750 | 13820 | 1070 |
Changes in assets- The current assets have how a positive change from year one to year two. The difference could be a change in inventory levels, debtors, or the cash at hand. The fixed assets show a negative change, which may be attributable to the company’s plant property and equipment depreciation.
Liabilities-the current liabilities show a negative change, which may be caused by the reduction of the company’s creditors. The long term liabilities show a positive change from year one to year two, which may be caused by the acquisition of a long term debt such as a mortgage.
Equity- the owners’ equity shows a positive change from year one to year two, which may be caused by the acquisition of new company shares.
| ECDK INCOME STATEMENT FOR THE YEAR ENDED 0000 | ||||
| Year 1 | Year 2 | Change | ||
| Sales | 5000 | 7000 | 2000 | |
| Less cost of goods sold | 2515 | 3305 | 790 | |
| Total Revenue | 2485 | 3695 | 1210 | |
| Less expenses | 700 | 2000 | 1300 | |
| Net income | 1785 | 1695 | -90 |
Total revenue-from the table we can observe that the total revenue change is positive. However, this does not give the profit/loss position of the company until expenses and taxes are paid out
Net income- from the table, the net income is negative, implying that the company made a loss.
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