You need the income statement in order to know performance for the current period. The statement of financial position is more of an overall snapshot.
Think of the two as the difference between liquidity and solvency. The SOFP sheet gives an indication of an entities ability to continue for the forseeable future where the income statment gives an indication of the ability to meet immediate needs.
The general public need only know that the company is stable, not its sales for the current period which in many cases may actually be misleading without a chairmans statement and the wrapper of a full set of accounts including the notes to the accounts.
You do however have the profit figure carried forwards to the capital account for the year but for tax purposes firms will normally try to keep that figure as low as possible anyway.
kind regards,
Shaun.
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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.
You can make a reasonably good estimation from it, especially when its not abbreviated accounts.
If its not the abreviated accounts (i.e. the full ones) then you have the revenue figure in the P&L.
You cannot do it from abreviated accounts which are the ones that are filed with companies house for small companies.
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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.
Ok good pt you'll definitely be able to find the Revenue figure if its full accounts.
If its abbreviated you could always use the debtors figure an expected debtors days and calculate it that way?
Ok good pt you'll definitely be able to find the Revenue figure if its full accounts. If its abbreviated you could always use the debtors figure an expected debtors days and calculate it that way?
Unless the business doesn't really offer credit. I'm thinking retail as an example.
Of course, you don't have the figures in a set of abreviated accounts to calculate debtor days.
You need the sales figure as part of the ratio and you don't have the sales figure unless you have the full accounts (and of course, if you had that in the case of this question you wouldn't need the debtor days ratio to calculate it).
For others reading this who don't know the debtors ratio it's Trade receivables / turnover(#1) * 365
#1 sales before discounts
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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.
I think what Jasper is speaking about it estimating the debtors days and working back, which is what DueDil does. I don't think its very reliable for the reasons above and that the debtors days will just be an estimate.
So basically a third party product that guesses based on a finger in the air without the figures required to calculate the estimate... Right, my estimate of Duedil just fell through the floor.
The basic premise has always to be that if its not a fact then its a lie and one cannot get back to turnover based on a guess.
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.
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.
To some extent I agree with that sentiment but certain elements such as lol and OMG are in such common useage that they have become generally accepted in normal email exchanges.
The issue that I would have with being told that is taking seriously anyone who thought the appearing on that dollar bill was a good idea.
I can't actually believe that idea came from Gary Carter as he's generally a very canny soul when it comes to PR and not into the shock bennetton type approach to marketing.
Then again, Dave gave something away the other day when he mentioned meeting the new young ICB marketing team texting away during a meeting (that would really anger me).
Maybe the wake up call of people voting IAB rather than ICB, I feel in a reaction to things such as that, will see blood on the marketing department floor and a return to more sensible marketing tactics that one would expect of a professional supervisory body.
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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.
I think that Americans can be forgiven for that sort of thing but we British find it a little down market.
Actually.... On a linked note did you realise that you can actually buy batches of real dollar bills off the fed and legitimately have the image changed (by them) in order to get advertising going hand to hand with no risk of it ending up in the bin.
Could you imagine that over here. Ronald McDonald instead of the the queen on sterling!
Urghh... Sure that there's a special plain of hell reserved for marketing people.
All the best,
Shaun.
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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.
Actually just seen an alternate version of the same bill signed Larry Hagman rather than JR Ewing.... But still not signed by the actual representitives of the fed.
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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.
Yes, I did indeed notice the signature after you pointed out the dubious legality on promotional materials.
Incredible. No, I did not know you could, what we would call 'deface' the dollar bill for marketing purposes. The business of America is business alright !
Yep Kris thats what I meant - work backwards.
Yes its an estimation but you can get a reasonable approximation, I know ive used it in the past and its never too far wrong.
