What is the impact on net income income statement

What is the impact on net income?
Income Statement
1/31/2010 Marble Designs, Inc.
Sales $10,000
$10,000
Expenses
Salary $3,500 $3,500
Office lease $900 $900
Telephone $96 $96
Office supplies $2,000 $166.67
Purchase: Computer $1,950 $54.17
Total Expenses $8,446 $4,717
Net Income $1,554 $5,283
11 How do cash and working capital differ?
Calculate working capital for the data below.
Income Statement Changes to Balance Sheet, 1/1 - 1/31
$40,209 Assets
Revenues $40,179 $40,209
Sales $10,000 Cash $9,000 $2,554
Less Cost of Goods Sold Accounts Receivable $8,000
Beginning Inventory $0 Inventory $1,500
Purchases $2,000 Office Supplies $1,833
Ending inventory $1,500 $500 Computer $1,950
Accumulated depreciation -$54
Gross profit $9,500
$9,000 $15,783
Operating Expenses
Salaries $3,500 Liabilities and Owner's Equity
Office Lease $900
Telephone $96 Notes payable $2,000
Office supplies $167 Jean Marble, equity $9,000 $13,783
Depreciation, Computer $54
Net income $4,783 $9,000 $15,783
Working capital $9,000 $11,887
12
Income Statement Changes to Balance Sheet, 1/31/10 - 1/31/11
1/31/2011 Assets
1/31/2010 1/31/2011
Revenues
Sales $90,000 Cash $2,554 $17,783
Beginning inventory $1,500 Accounts Receivable $8,000 $5,500
Purchases $25,000 Inventory $1,500 $2,000
Ending inventory $2,000 Office Supplies $1,833 $1,833
Less Cost of Goods Sold $24,500 Computer $1,950 $1,950
An analysis of cash flow can help determine how a company uses its cash assets. Is it used to acquire assets, meet liabilities, retire debt etc.
The starting point of a cash flow analysis is a review of the income statement and balance sheet.

Computer
$2,320
Gross profit $65,500 Accumulated depreciation -$54 -$1,091
$15,783 $30,295
Operating Expenses
Salaries $42,000 Liabilities and Owner's Equity
Office Lease $10,800
Telephone $1,151 Notes payable $2,000 $3,000
Office supplies $2,000 Jean Martin, equity $13,783 $27,295
Depreciation, Computers $1,037
Gain on sale of office $5,000 $15,783 $492,315
Net income $13,512 Working capital $11,887 $24,116
13
Considering the above income statement and balance sheet:
What was the value of the materials in inventory at the beginning of the period?
14 How much additional inventory was purchased during the year?
15 How mych inventory was used during the year?
16 Calculate the working capital for both month end periods.
17 What was the cash on hand at the end of Jan 2011?

1
What is statement analysis?
2
3
The following is a balace sheet displaying two year's data on a company. Common-size the report. Place results in the columns headed Common-sized.
Calculate the Dollar Change and the Percent Change from 2012 to 2013. Place results in the Dollar Chg & Pct Chg columns.
Common-sized
2013 2012
2013 2012 Dollar Chg Pct Chg
ASSETS
Non-current assets
260,000 240,000
Goodwill 60,000 60,000
Intangible assets 120,000 100,000
440,000 400,000
Current assets
Inventories 24,000 20,000
Trade receivables 50,000 60,000
16,000 20,000
90,000 100,000
TOTAL ASSETS 530,000 500,000
EQUITY AND LIABILITIES
Equity
Share capital 200,000 200,000
Retained earnings 100,000 80,000
Revaluation reserve 30,000 20,000
Total equity 330,000 300,000
Non-current liabilities
Long term borrowings 70,000 100,000
Current liabilities
Trade and other payables 70,000 50,000
Short-term borrowings 20,000 16,000
30,000 30,000
Current tax payable 10,000 4,000
Total current liabilities 130,000 100,000
Total liabilities 200,000 200,000
530,000 500,000
4
What is Variance Analysis?