Australia China Holdings - Financial Statements

Let us look now at the figures and finances of Australia China Holdings. The financial statements for this company as at 31st March 2013 are split into two separate entities; The Economic Entity and The Parent Entity.
The Parent Entity is simply a holding entity for the controlled entities classed under the Economic Entity. Therefore, the controlled entity will be discussed.

Profit and Loss:
In viewing the income and expenses of Australia China Holdings Limited the following success, issues and concerns were seen:

• Sales for the Economic Entity increased from $961,000 to $1,203,000. This therefore has increased the overall Gross Profit.
• Even  though the income has increased they also have seen an increase in the Administration and other costs of the company from $660,000 to $883,000
• With this significant increase in costs, the profit of Australia China Holdings has decreased from $612,000 to $320,000

Balance Sheet:
The balance sheet has shown some significant increases as follows:

• Receivables have increased from $1,605,000 to $2,802,000. This could be the result of the increase in sales.
• Payables have also increased from $949,000 to $1,391,000. This could be the result of the increase in administration and other costs.

All the information detailed in the financial statements have been converted from foreign currency to Australian Dollars.