Download HISTORICAL BACKGROUND OF AYATEKE STAR COMPANY ltd

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As accountant, This is the best opportunity for
to present before you as members of
management of AYATEKE STAR COMPANY ltd and
their partners the financial statement of 4
months in
summary .From July to October
especially income statement. it includes three key
elements are income or revenues ,expenses and
net profit
1. The total income: is money received, especially
on a regular basis, for work or through
investments, an excess of revenues over
expenses for accounting period, also called
earnings or gross profits. These are the income
of 4 months.
Year
Gross profit
July
August
September
12,903,030
14,296,300
14,457,160
October
12,138,345
Source:secondary data 2016
Gross profit
15,000,000
14,000,000
13,000,000
Gross profit
12,000,000
11,000,000
10,000,000
July
August
September
October
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Interpretation
The gross profit margin percentages of this company
was represented as follow July was Rwf 12,903,030,
August was Rwf 14,296,300, September was Rwf
14,457,160 and October was Rwf12,138,345.In
October the gross profit reduced because sales of
water decreased because that months located rain
season the people used water delivered from floor .It
caused negative impact on gross profit margin and it
decreased the ability of payment of expenses and net
income of company reduced.
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2. The expenses: Money spent or cost incurred in an
organization’s efforts to generate revenue, representing
the cost of doing business. Expenses may be in the
form of actual cash payments. An expense or
expenditures is an outflow of money to another person
or a group to pay for an item or service, or for a
category of costs. These are the Amount of expenses of
4 months.
Year
Expenses
July
August
September
7,135,310
14,341,950
11,171,283
Source:secondary data 2016
October
9,841,084
Expenses
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
Expenses
6,000,000
4,000,000
2,000,000
0
July
August
September
October
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Interpretation
The expenses percentages of this company was represented
as follow July
was Rwf7,135,310, August was
Rwf14,341,950, September was Rwf11,171,283 and
October was Rwf9,841,084.In August and September ,the
expense increasing because the company expanded the
activities in order to occur suitable water in all district.
3. The net income :Money received after used all expenses
and this net income can called loss when its negative while
can be profits when it’s positive (Richard and Margret
,1990).The total revenue in an accounting period minus all
expenses during the same period. These are the income of 4
months.
Formula is Net income =Total income -Expense
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Table 3: Net income
Month
July
August
September
Gross profit
12,903,030
14,296,300
14,457,160
12,138,345
Expenses
7,135,310
14,341,950
11,171,283
9,841,084
Net income
5,767,720
(45,650)
3,285,877
2,297,261
July
August
September
Month
Source: secondary data 2016
October
October
Net income
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
Net income
2,000,000
1,000,000
0
July
-1,000,000
August
September
October
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Interpretation
The net income percentages of this company was
represented as followJuly wasRwf5,767,720, August was
Rwf(45,650), September was Rwf3,285,877and October
was Rwf2,297,261.In October the Net income reduced
because sales of water decreased because that months
located rain season the people used water delivered from
floor but for August and September there are increasing of
expenses in order to expand the activities as especially in
August; as cause of the company loss in that month.
 THANK YOU