Prepare an income statement and balance sheet for the Year Ending 5th April 2023 based on a trial balance attached to ‘appendix A’. Make sure it meets relevant accounting principles, conventions, and standards. Show appropriate adjustments, such as accruals, prepayments and depreciation to the income statement.

Once a start-up and/or small business gets off the ground, one of the most important challenges it faces is to record, manage and interpret the financial aspects of business. Alpha and Omega is a local Chartered Accountancy firm, specializing in start-up and small/family businesses. You are working with the firm as a trainee assistant accountant, and you are required to Produce a Report that will be attractive to small business, while showing purpose and scope of accounts and its importance to their business.

Businesses are required to produce a variety of financial information for both internal and external purposes.

Alpha and Omega Chartered Accountancy firm has many local family-run small businesses as its clients. You, as an accounting assistant, have been assigned to a local firm named Happy Flowers Bouquet to prepare two financial reports and associated tasks as provided below:

1. Income Statement and Balance Sheet:

a) Prepare an income statement and balance sheet for the Year Ending 5th April 2023 based on a trial balance attached to ‘appendix A’. Make sure it meets relevant accounting principles, conventions, and standards. Show appropriate adjustments, such as accruals, prepayments and depreciation to the income statement.

Financial ratios:

You are required to critically evaluate financial statements to assess business performance interpreting the financial ratios which you have calculated and compare with the relevant benchmarks. Apply a range of financial ratios to evaluate the client’s performance and financial position over two years in ‘appendix B’. Emphasis the limitation of using ratios as a performance measurement tool. justify your conclusions.

Cash Budget:

Prepare a 12-month cash budget for the client using Excel spreadsheet based on the data attached to ‘appendix C’. Discuss the benefits and limitations of the cash budget and budgetary planning and control of the client. Use your completed cash budget to identify problems of budgetary planning and control and provide justified solutions to ensure efficient and effective deployment of resources.

Identify problems (e.g., sudden increase / decrease in cash position due to different scenarios etc.) revealed by budgetary planning and control (Cash Budget) prepared for the client. Provide solutions to such problems with justification on the impact of such solutions on the client’s business operations and the decision making.

Requirements: 3000