BUSINESS ANALYSIS

Business Analysis

Question; 01

Lampeter Agricultural Supplies

Profit and loss account

For the year to December 31st, 2010

Sales revenue950,000

Less: cost of goods sold

Stock (opening)360,000

Add: purchases480,000

Goods available for sale 840,000

Less: stock (closing) (378,000)

Cost of goods sold(462,000)

Gross profit488,000

Less: operating cost:

Insurance25,000

Advertising10,000

Electricity 6,000

Salaries and wages56,000

Rent and rates32,000

Telephone 7,000

Depreciation 30,000

Vehicle running expense14,000

Total operating cost(180,000)

Net income for the year 308,000

Question; 02

Lampeter Agricultural Supplies

Balance Sheet

As at December 31st, 2010

Assets

Current Assets:

Trade debtors12,000

Stock378,000

Stationery 4,000

Fixed Assets:300,000

Less: Accumulated depreciation: (90,000)

Total Assets604,000

Equities

Debts:

Trade creditors23,000

Bank 12,000

Total debts;35,000

Capital 297,000

Income 308,000

Drawings(36,000)

Total ownership claims:569,000

Total equities604,000

Question; 03

VAT is a tax charge of the enterprise supply, goods and services the United Kingdom. Usually you pay VAT at the standard rate, unless you sell goods or services, and the circumstances in which you sell, means that you allowed charging different rates.

There are different VAT rate, according to the goods or services to provide the type of business. There are three different rates. They are:

* Standard rate - 20 percent

* lower interest rates - five percent

* zero interest rate - zero percent

There are some goods and services are:

* Exemption - so do not charge VAT on them

* Outside the UK VAT system in the range of total

The following three factors play a decisive part you need to register for: Tax supplies - any goods and services subject to VAT at any rate, including zero, are called taxable supplies. Remote Sales - Remote sales are when a European Community (EC) member countries for supplies and delivery to customers in another EU member countries and customers who do not pay taxes: VAT registration, or can be used for VAT registration. The most common example of distance sales is mail order sales. Acquisition - If you are an organization or enterprise, rather than purely private individuals acting in their personal capacity, any goods you buy in another EU country VAT registered supplier from the acquisition for the relocation to the UK is famous for.

Tax VAT (VAT) introduced in the UK from 1 April 1973 at the same time Britain joined the EU. This tax is distributed across England, Northern Ireland, Scotland and Wales, including the Isle of Man. Companies registered in the UK must have a taxpayer identification number and VAT registration number (VAT). Upon delivery of the annual report to the IRS the UK; companies are required to provide information on payment of value added tax. Value Added Tax (VAT) is charged in Britain at a rate of 17.5%, with the exception of only a few goods and services. In order for a UK company registered in order to address the tax VAT, the company should conduct the actual trading activity in the UK and have an annual turnover of more than £ 60,000 (standard rate - 17,5%, discount - 5% and zero). Companies that do not conduct business in the UK or any kinds of business activities are export-import, should not become registered for VAT in the tax office. Tax reports are filed quarterly on VAT. In the event that the company has no obligation to register the ...