well, I get the right answer but for some reason it doesn't feel right the way that I got there (probably just end of day syndrime kicking in)
Firstly I get income to £7550
The key there is the subscriptions field. Calcualte out the subscriptions at the start of the period (100-80) movement in the period (800) and subscriptions at the end of the period (60-90) giving 850.
Income
250 Draw
1750
Raffles
650
Race Night
1300
Subscriptions
850
Refreshments
700
Sponsorship
2300
7550
Next the Expenses. Best to set those out in a matrix and plug in the values from the question. The key is knowing what the position was at the start of the period so being able to calculate how much of the movement in the period was down to the current and previous periods.
The calculation is always 01/01/2009 column + In period - 31/12/2009 = Allocate to period.
01/01/2009
In Period
31/12/2009
Allocate to period
Machine Maint
-650
920
-140
410
Heat & Light
-300
850
-175
725
Ground Rent
-410
1200
-430
1220
Insurance
480
900
500
880
And then calculate the depreciation.
1) Pavillion £60k @ 2%
2) Machinery £21k @ 10%
3) Equipment £6k plus £2.1k additions @ 20%
This gives us expenses of :
Expenses
Refreshments
900
Heat & Light
725
Ground Rent
1220
Insurance
880
Ground mainenance
750
Machinery Maintenance
410
Depreciation
Machinery
2100
Equipment
1620
Pavillion
1200
9805
So income of 7550 less expenses of 9805 is (2255).
Now someone's going to come along and tell me that I only got the right answer by accident!
Even if that proves to be the case I hope that the calculations help to put you on the right track,
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
