Income statement or profit and loss report (P&L)
The income statement lists the income and expenses for the fiscal year and it indicates whether the company has made profit or loss during the reporting period.
Company's Financial Accounting
Finrepo » Company's Financial Accounting » Financial Analysis of the Company. Main Indicators » Income Statement, Balance Sheet Data of the Hypothetical Company X
Income statement and balance sheet data of the hypothetical company X
The cornerstones of a company’s economy are profitability, financing (capital structure and liquidity) and the growth. All these factors influence each other and form the core of the company's economy. We will consider them through the financial indicators' calculations, examine some important financial rations and illustrate their meaning through an example. Our calculations will be based on income statement and balance sheet data of the hypothetical company X. Let’s have a look.
Data of the hypothetical company X for calculations
Balance sheet
The balance sheet is one of the main reports, which represents the indicators characterizing the property and financial position of the enterprise at the reporting date.
| INCOME STATEMENT | In € (thousands) or local currency, year 2019 | In € (thousands) or local currency, year 2018 |
|---|---|---|
| Turnover / Sales revenue | 200 | 180 |
| Other operating income | 50 | 25 |
| Raw materials and services costs | (50) * | (60) * |
| Variation in inventories | (10) * | 4 |
| Staff expenses | (70) * | (55) * |
| Rent and utilities | (60) * | (50) * |
| Depreciation | (10) * | (14) * |
| Other operating charges | (10) * | (5) * |
| Operating profit/operating income (EBIT) | 40 | 25 |
| Interest payments | (4) * | (2) *; |
| Earnings before taxes (EBT) | 36 | 23 |
| Taxes | (8) * | (4) * |
| Net profit/Net income | 28 | 19 |
| *parentheses () around a number means negative amount | ||
| BALANCE SHEET | In € (thousands) or local currency, year 2019 | In € (thousands) or local currency, year 2018 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Tangible assets | 47 | 50 |
| Current assets | ||
| Stocks | 40 | 50 |
| Trade debtors or accounts receivable | 20 | 18 |
| Cash in hand and at banks | 10 | 20 |
| TOTAL ASSETS | 117 | 138 |
| EQUITY AND LIABILITIES | ||
| Capital and reserves | ||
| Capital stock / Share capital | 40 | 40 |
| Retained earnings or loss (previous financial years) | 10 | 20 |
| Profit (loss) of the financial year | 28 | 18 |
| Long-term creditors | ||
| Loans from credit institutions | 20 | 30 |
| Short-term creditors | ||
| Loans from credit institutions | 7 | 10 |
| Accounts payable / Trade creditors | 7 | 15 |
| Accruals and deferred income | 5 | 5 |
| TOTAL EQUITY AND LIABILITIES | 117 | 138 |