State why the figures are different

Assignment Help Financial Management

Reference no: EM13945849 , Length: word count:1250

Revenue		1,000,000
Purchases	280,000
accumulated depreciation vehicles		6,000
accumulated depreciation P + E		10,000
Insurance	3,000
telephones	2,200
Distribution costs	4,800
Admin expenses	20,000
Interest received		5,000
Debenture interest paid	175
Vehicles	46,000
P + E	30,000
opening inventory	32,000
trade receivables	40,000
trade payables		30,000
bank and cash	20,000
ordinary shares of $1 each		10,000
6% redeemable preference shares at $1 each		1,000
share premium		500
Retained earnings		20,000
ordinary dividends paid	1,000
preference dividends paid	60
7% debentures		5,000
premises	408,265
salaries and wages	200,000
	1,087,500	1,087,500

This is a trial balance for a fictitious company called sheikh cars LTD.

What is required is that you compare figures from this trial balance to figures for a company called AUTOTRADER, and state why the figures are different.

An example would be Auto trader has a large amount of non-tangible assets but this company hasn't, the reason would be that because auto trader is purely online they spend a lot on advertising but this fictitious company doesn't spend money on advertising, because it is not an online website rather it is a showroom that displays there vehicles that are to be sold.

Another thing that should be included is how sheikh cars ltd although they sell cars so cars would be included in their stock and purchases they also have demonstration cars and cars used by managers hence depreciation on vehicles.

Auto trader is a real company so the accounts should be available online.

All figures and comparison MUST be in DETAIL.

About 4 references are needed in the introduction and conclusion, and the references MUST be UK books.

Topic: financial reporting

No# of Pages: 5 pages (1,250 words)

Subject Area: Accounting

Paper Style: Harvard

No# of Sources Required: 5

Reference no: EM13945849

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