Restating my firms financial was actually so easy this time around, i didn’t think my brain was actually retaining so much information till i did this. i especially loved the video on YouTube that were there to help me when i occasionally got stuck.
- As my financial statements stated the revenue as Sales revenue, i had decided to use all my revenue figures together to come up with a total revenue figure and thus this is the number I used when working out my allocation for O and F.
- In 2017 and 2018 the percentage of cash out of operating revenue were at reasonable percentage of 2%, as Martin Turner stated in chapter 4 of the study guide “about 0.5% or 1% of sales might be an appropriate level of cash for a business to hold for the purposes of conducting its operations.” So, when allocating O and F I have given both O and F 1% each to equal the 2%.
- When calculating 2019 and 2020 Fleetwood had a much more significant level of cash balances so on the advice of Martin Turner, I have allocated the 1% to Fleetwood’s operating assets and the remaining balance to financial assets.
- My finance and other income could be broken up in the 2017 and 2018 financial year. But was not able to do that for the 2019 and 2020 financial year. Therefore, for the 2019 and 2020 financial year I decided to use the cash figures instead of the accrual figures, as given on the Statement of cash flows under ‘operating activities’.
I finally completed my restated financial statements my balance sheet was a success straight away YAY!!!!! However, that was a much different story when it came to the income statement ARGH!! The amount they were out each year kept increasing and I did not know why I tried fixing it and making sure all my numbers were correct but seeing as my numbers were linked, I did not see how they could be out, so I was very frustrated. I decided to leave the figures as they were and just continue with the ratios and then see if I could figure the problem after. The figures for my years were out by 40, 221, 225, 1,748 for 1027, 2018, 2019, 2020, respectively.