Management Accounting in Support of Strategy

Appendix B

Income Statement and Balance Sheet for X Inc. and Y Inc.

Income statement for the year ended January 31, 20xx.

	X Inc.		Y Inc.
	$000	$000	$000	$000
Revenue		4,000		6,000
Cost of sales
Opening stock	200		800
Purchases	3,200		4,800
	3,400		5,600
Less: closing stock	400		800
		3,000		4,800
Gross profit		1,000		1,200
Expenses
Distribution costs	200		150
Administration expenses	290		250
Total expense		490		400
Operating profit		510		800
Interest paid		10		400
Profit before tax		500		400
Taxation		120		90
Net profit for the period		380		310

Balance sheets ...