MNE3701
Assignment 2 Semester 1 2026
Unique number:
Due Date: 26 April 2026
QUESTION 1
Constructing financial statements for a small business involves preparing the Income
Statement, Balance Sheet, and Cash Flow Statement in a structured and logical manner,
using accurate financial data to reflect the performance and position of the business. These
statements are interconnected and provide a complete financial picture that supports
decision-making and planning (Maritz and Hibling, 2022).
1. INCOME STATEMENT (PROFIT AND LOSS STATEMENT)
The Income Statement shows the business's revenues and expenses over a specific
period, resulting in a net profit or loss.
Practical Example:
Suppose I own a small bakery called Sweet Treats Bakery.
Revenue: R150,000 (sales of cakes and pastries)
Expenses: Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making
Fully accept the consequences should use ofor
you plagiarise this document
misuse you agree to:
this document.
Use this document solely as a guide for learning, reference, and comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
, +27 81 278 3372
QUESTION 1
Constructing financial statements for a small business involves preparing the Income
Statement, Balance Sheet, and Cash Flow Statement in a structured and logical
manner, using accurate financial data to reflect the performance and position of the
business. These statements are interconnected and provide a complete financial
picture that supports decision-making and planning (Maritz and Hibling, 2022).
1. INCOME STATEMENT (PROFIT AND LOSS STATEMENT)
The Income Statement shows the business's revenues and expenses over a
specific period, resulting in a net profit or loss.
Practical Example:
Suppose I own a small bakery called Sweet Treats Bakery.
Revenue: R150,000 (sales of cakes and pastries)
Expenses:
o Rent: R15,000
o Salaries: R50,000
o Ingredients and supplies: R30,000
o Utilities: R5,000
o Marketing: R10,000
Income Statement Example:
Income Statement for Sweet Treats Bakery Amount (R)
Revenue 150,000
Less: Expenses
- Rent (15,000)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
Assignment 2 Semester 1 2026
Unique number:
Due Date: 26 April 2026
QUESTION 1
Constructing financial statements for a small business involves preparing the Income
Statement, Balance Sheet, and Cash Flow Statement in a structured and logical manner,
using accurate financial data to reflect the performance and position of the business. These
statements are interconnected and provide a complete financial picture that supports
decision-making and planning (Maritz and Hibling, 2022).
1. INCOME STATEMENT (PROFIT AND LOSS STATEMENT)
The Income Statement shows the business's revenues and expenses over a specific
period, resulting in a net profit or loss.
Practical Example:
Suppose I own a small bakery called Sweet Treats Bakery.
Revenue: R150,000 (sales of cakes and pastries)
Expenses: Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making
Fully accept the consequences should use ofor
you plagiarise this document
misuse you agree to:
this document.
Use this document solely as a guide for learning, reference, and comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
, +27 81 278 3372
QUESTION 1
Constructing financial statements for a small business involves preparing the Income
Statement, Balance Sheet, and Cash Flow Statement in a structured and logical
manner, using accurate financial data to reflect the performance and position of the
business. These statements are interconnected and provide a complete financial
picture that supports decision-making and planning (Maritz and Hibling, 2022).
1. INCOME STATEMENT (PROFIT AND LOSS STATEMENT)
The Income Statement shows the business's revenues and expenses over a
specific period, resulting in a net profit or loss.
Practical Example:
Suppose I own a small bakery called Sweet Treats Bakery.
Revenue: R150,000 (sales of cakes and pastries)
Expenses:
o Rent: R15,000
o Salaries: R50,000
o Ingredients and supplies: R30,000
o Utilities: R5,000
o Marketing: R10,000
Income Statement Example:
Income Statement for Sweet Treats Bakery Amount (R)
Revenue 150,000
Less: Expenses
- Rent (15,000)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
