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|
|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|
|Less cost of goods sold||2515||3305||790|
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.