Timesofummah.com – Are you looking for an example of a trading company financial report? If this is what you are currently doing then you must read this article to the end. Because here Gramedia will explain about the definition of a trading company, types of financial statements, income statements, examples of cash flow statements, types of cash flow statements, and examples of trading company reports.
So in making a report we should not be careless, because there are procedures in writing it. In addition to the procedures, there are also several methods of making financial statements for trading companies that we must pay close attention to.
Because the financial statements of this trading company are very vital in nature because it determines whether the company over a certain period of time produces long or even loses.
So for those of you who want to know complete information about trading companies along with examples of financial reports, please read the following article.
1. Definition of trading company
Have you often heard the term Trading Company, but until now you don’t know its official meaning? A trading company is a company engaged in the trading of goods or the main activity in the company is the sale of goods.
Generally, trading companies will sell the products they sell without any changes to the products being sold. What is meant by product change is to change the goods, either from the form or value of the goods themselves. So basically the trading company only buys goods or products and immediately sells them again at a higher price. From this price difference, the trading companies make a profit.
There are several types of trading companies that exist today based on consumer segmentation and the type of goods sold. As :
- Raw Goods Trading Company or Production
- Finished Goods Trading Company
- Wholesaler . Trading Company
- Middleman trading company or Intermediary
- Retail trading company or Retailer
1.1 Trading Company Accounts in Financial Statements
Trading companies, especially in financial statements, usually have several different accounts with non-trading companies, so recording these accounts will be useful to find out whether sales are growing or not. This account consists of:
1. Purchase Account
This purchase account is used to record every transaction on the purchase of goods made in cash or on credit.
2. Purchase Discount Account
The purchase discount account has a function to provide a record of the discount at the beginning of the transaction by the seller of the goods and the amount of this purchase discount is determined by the seller.
3. Purchase return account
This account has a function to record the return of purchased and damaged merchandise that must be returned.
4. Purchase freight account
This next account has a function to record the amount of account expenses that are borne by the trading company.
5. Sales freight account
There is also a sales freight expense account that is used to record the cost of paying for goods that have been sold.
6. Sales Account
This sales account has a function to record every transaction of sales of goods with credit or cash payments. can also learn how to record sales transactions through the Computerized Trading Company book with MYOB.
7. Sales Discount Account
This account is used to record discounts that will be given from the seller to the buyer.
8. Merchandise Inventory Account
This account is used to record the value of inventory for a certain period.
2. Types of Trading Company Financial Statements
There are several types of trading company financial reports that you should know when you want to dive into the world of trading companies, such as:
- Income statement
- Cash flow statement
- Inventory Report
- Balance Sheet
- Accounts Payable
- Accounts Receivable
With so many types of reports that must be made, it is very important for companies to provide financial reports quickly, precisely, and accurately. Therefore, there is the development of an accounting computer program which can also be studied through the book Direct Practice: MYOB version 15 in Trading Companies.
And here Gramedia Literacy will explain several types of financial statements of trading companies in more detail and detail. So you can use it as a reference when you want to get into the trading company business.
2.1 Income Statement
The first is the income statement, this is a report that informs the performance of a trading company in a certain period. By making this profit and loss report, each company can in detail and detail calculate the losses and profits earned in a predetermined period.
So the company can analyze more clearly about the burden that must be borne due to losses and also the total income. Learn how to make a profit and loss statement, and various other financial reports through the book Introduction to Accounting 2 Trading Companies below.
2.2 Example of profit and loss for a trading company
To get an idea of the example of a trading company’s profit and loss, you can see the example in the image below:
- PT ABC JAYA ABADI
- INCOME STATEMENT
- 31 DECEMBER 2021
I. NET SALES
- Sales IDR 60,000,000 –
- Sales Returns and Discounts IDR 3,500,000
- Net Sales IDR 56,500,000
II. COST OF GOODS SOLD
- Finished Goods Inventory (Initial) IDR 30,000,000 +
- Cost of Production Rp. 10,000,000
- Goods Available For Sale IDR 40,000,000 –
- Finished Goods Inventory (ending) Rp 15,000,000 –
- Cost of Goods Sold Rp 25,000,000
- Gross Profit IDR 35,000,000,
III. OPERATIONAL COSTS
a) SALES COST:
- Salary Cost of Sales Rp 2,000,000 +
- Commission Fee IDR 1,000,000 +
- Advertising Fee IDR 1,000,000 +
- Transportation Fee IDR 1,500,000 +
- Blaya Miscellaneous sales share Rp. 500,000 =
- Total Sales Cost IDR 6,000,000
b) ADMINISTRATIVE AND GENERAL COSTS:
- Office Supplies Cost IDR 750.000 +
- Adm and general insurance costs IDR 1,000,000 +
- General section electricity and telephone costs IDR 300,000 +
- Cost of Depreciation of Building Bag. General IDR 500,000 +
- Office Equipment Depreciation Cost IDR 100,000 +
- Miscellaneous general part costs IDR 300,000 +
- Total ADM and General Fees IDR 750,000 +
- TOTAL OPERATING COST IDR 3,700,000 –
- NET BUSINESS PROFIT IDR 25,300,000
There are 2 important things in the profit and loss example above, namely costs or expenses and also sales.
For a more detailed explanation of the income statement above, it is as follows:
Inventory of Goods Ready to Sell
To calculate the inventory of ready-to-sell goods, it requires the following formula:
Beginning Inventory + Net Purchases (Consists of gifts – purchase discounts – purchase returns)
= IDR 150 million + IDR 170 million = IDR 320,000,000
Cost of goods sold
To calculate the cost of goods sold can use the formula:
Inventory of Goods Ready for Sale – Ending Inventory
examples are as follows:
= IDR 320 million – IDR 200 million = IDR 120 million
And to determine the calculation of gross profit is by the following formula:
Total Sales – Cost of Goods Sold
examples are as follows:
= IDR 200 million – IDR 120 million = IDR 80 million
Operational Profit and Loss
To be able to calculate operating profit and loss, you can use the following formula:
Gross Profit – Operating Expenses
IDR 80 million – IDR 30 million = IDR 50 million
Operating Profit and Loss
Finally, to calculate the total operating profit and loss is to use the formula:
Operating Profit and Loss + Other Income-Other Expenses
IDR 50 million – IDR 15 million = IDR 35 million
2.3 Things to consider in making an income statement
There are several things that must be considered in making an income statement such as:
- Determine the format and form of the income statement to be used
- Conceptualize and understand each element made in the predetermined profit and loss statement format
- Understand how to analyze transactions in the income statement
So when making financial statements about profit and loss you have to really understand and master what we explained above.
2.4 Example of a trading company balance report
The balance sheet of the company’s financial statements is a report made to display detailed information about the company’s capital, debt and assets at the end of a certain period. In companies, it is usually also known as the statement of financial position.
The explanation of the balance sheet above is as follows:
- Total assets = IDR 261,560
- Total debt Rp. 50,360
- Total capital Rp. 211,200
- So the balance at the value of Rp. 261,560
3. Example of a cash flow statement for a trading company
A cash flow statement or in English known as a Statement of Flow is a summary of cash disbursements and receipts from a trading company within a certain time and period.
Generally this cash flow is divided into 3, namely:
- Investment Activities
- Operating Activities
- Funding Activities.
3.1 operating activities
Operational activities are generally related to the income statement of cost of goods, operating expenses and sales transactions.
3.2 investment activities
Investment activities are generally related to sales and purchases of fixed assets.
3.3 financing and financing activities
Funding Activation is generally related to the company’s capital and company obligations such as selling securities, increasing capital and paying debts.
4. Types of cash flow statements
In making a cash flow statement, there are also several methods of preparation, the first is the direct method cash flow statement and the indirect method cash flow statement or also known as the Indirect Method.
For more details about the types of cash flow statements, you should read the following article along with examples of cash flow statements.
4.1 Direct method cash flow statement
The direct method of the cash flow statement is a method of making cash flow statements which is a method of calculating it directly from operating activities based on receipts and expenses of trading companies.
The following is an illustration of making a direct method cash flow statement that you can use as a reference:
Example of a Direct Method Cash Flow Statement
PT. ABC 123
CASH FLOW STATEMENT
YEAR 31 DECEMBER 2021
Cash flow from operations:
Cash received from customers Rp. 30,000,000,-
Cash to pay operating costs Rp. 3,700,000,-
Cash to purchase inventory Rp 5,000,000,-
Cash to pay taxes IDR 2,500,000,-
Cash to pay interest costs IDR 1,000,000 = IDR 12,200,000,-
Net cash flow from operating activities Rp 17,800,000,-
Cash flow from investing activities:
Cash in coming from the sale of investment Rp 7,700,000,-
Cash out to buy equipment Rp. 5,500,000,-
Net cash flow for investing activities IDR 20,000,000
Cash flow Financing:
Cash received from the sale of shares Rp 15,000,000,-
Cash to pay dividends IDR 3,000,000
Cash to pay bonds payable IDR 5,000,000 = IDR 8,000,000
Net cash inflow from financing activities Rp 2,500,000,-
Increase in cash Rp 4,500,000,-
Cash balance at the beginning of the year IDR 60,000,000
Cash balance at the end of the year Rp 84,500,000,-
4.2 Statement of Cash Flows Indirect Method (Indirect Method)
The definition of the indirect method is the method used to make a cash statement in which the amount of cash flow compared to the company’s operating activities is calculated based on the income statement and then adjusts for amortization and depreciation.
The following is an example of making a cash flow statement using the indirect method:
Example of Indirect Method Cash Flow Statement
PT ABC JAYA ABADI
STATEMENT OF CASH FLOWS FOR DECEMBER 31, 2021
Cash flow from operations:
Net profit according to the income statement Rp 30,000,000,-
Decrease in office inventory Rp 7,000,000,-
Depreciation fee IDR 2,500,000,-
Increase in debt costs Rp. 5,500,000,-
Increase in short-term debt Rp. 3,000,000,- = Rp. 18,000,000
Increase in accounts receivable Rp 6,000,000,-
Increase in prepaid expenses Rp 2,000,000,-
Profit on sale of fixed assets Rp 7,000,000
Decrease in tax payable Rp. 1,500,000,- = Rp. 16,500,000,-
Net cash flow from operating activities Rp 31,500,000,-
Cash flow from investment:
Cash in coming from sale of investment : Rp 12,000,000,-
Cash out to buy equipment : IDR 8,000,000
Net cash outflow for investing activities : IDR 4,000,000
Cash flow from financing
Cash received from the sale of shares : IDR 20,000,000
Cash to pay bonds payable : IDR 3,000,000
Cash to pay dividends: IDR 2,000,000,- = IDR 5,000,000
Net cash inflow from financing activities: IDR 15,000,000
Increase in cash Rp 50,500,000,-
Cash balance at the beginning of the year Rp 60,000,000
Cash balance at the end of the year Rp 110,500,000,-
4.3 How is a Cash Flow Statement Prepared?
To be able to make a cash flow statement you must pay attention to the following things:
- Counting carefully the ups and downs of cash
- Calculate and make a net cash report in the company’s operations with the direct cash report method or indirect cash report
- Make a calculation of the overall flow of total net cash which is added up from net cash in funding, operations, and investment from the beginning of the balance to the end of the period.
Those are 3 things you need to pay attention to in making a good and correct cash flow report in a trading company. In order to be able to make good financial reports, must also be able to analyze financial statements by examining the parts contained in them. Learn how in full through the book Analysis of Financial Statements.
5. Example of a trading company report pdf
Here are some examples of trading company reports in pdf format that you can try to download to be used as references for making trading company reports that you manage now.
View Sample trading company report pdf=> View
You can download all the sample files for the trading company report above, so the more references you have. Then there will be more and more information that is really needed in making financial reports for trading companies.
Related Books Examples of Trading Company Reports
Here are 2 recommended financial accounting books related to examples of trading company reports from Timesofummah.com
Trading Company Accounting: Zahir Accounting Program Application Version 6
The description of this book starting from a brief history of accounting, an understanding of the accounting point of view, accounting as an information system, to an explanation of the accounting cycle will further complete the knowledge of the readers. In addition, this book also explains the accounting process, financial statements, and basic accounting equations as the basis for making a good financial report with the support of a well-structured account number.
Computerized Trading Company with MYOB
MYOB trading company accounting computerization is specifically shown for readers who want to use the MYOB application to manage trading company accounting. This book will guide you to become proficient in using MYOB to manage trading company accounting. Through case examples and step-by-step solutions, you will quickly understand the material provided. You can practice the material discussed using the MYOB application version 19.18, or previous versions.
In detail, this book discusses:
- Get to know MYOB Accounting
- Using MYOB
- Working with Purchasing Transactions
- Supplier Payment Transaction
- Sales Transaction
- Recording of Receivable Payment Transactions
- Using MYOB More