Refer to the 'Data Task A' sheet the accompanying Excel workbook. You have been provided the most recent Profit amp;Loss Statement Tamp;K Solutions...

Refer to the 'Data Task A' sheet the accompanying Excel workbook.

You have been provided the most recent Profit &Loss Statement T&K Solutions that shows the bookkeeping service losing money.

Using the proforma in 'Schedule 1', re-calculate the 2017 profit for T&K Solutions without the bookkeeping service. Be careful to take into account all additional information provided in the 'Data Task A' worksheet

Taxation:

Revenue= $800,000

less cost = (Partner salary: 75,000)+ (Professional Staff Cost: 320,000)+ (Office Staff: 45,000)+ ( client travel cost: 25,000)+ (IT Support: 5,000)+(Printing and stationary: 8,000)+ (advertising: 8,000)+(rent :16,000)+(utilities:8,000)+( depreciation: 5,000)+( bad debt: 2,000)= net profit = 283,000

Bookkeeping

Revenue= $195,000

less cost = (Partner salary: 75,000)+ (Professional Staff Cost: 120,000)+ (Office Staff: 45,000)+ ( client travel cost: 5,000)+ (IT Support: 3,000)+(Printing and stationary: 3,200)+ (advertising: 8,000)+(rent :16,000)+(utilities:8,000)+( depreciation: 5,000)+( bad debt: 3,000)= net profit = -96,200

Advisory

Revenue= $950,000

less cost = (Partner salary: 150,000)+ (Professional Staff Cost: 400,000)+ (Office Staff: 45,000)+ ( client travel cost: 52,000)+ (IT Support: 9,000)+(Printing and stationary: 11,000)+ (advertising: 8,000)+(rent :16,000)+(utilities:8,000)+( depreciation: 5,000)+( bad debt: 0)= net profit = 246,000

partner wages = Terry and Kerry are both paid a salary of $150k pa. Terry's salary is spread between Tax & Bookkeeping. Kerry's salary is charged to Advisory