Assignment 4: Mantis Enterprises Scenarios

Assignment 4 — Mantis Enterprises Scenario
In this task, I will be exploring the Trading Profit and Loss statement and Balance Sheet of Mantis Enterprises, explaining the key terms within each document and the impact they can have on the organisation.
Trading Profit and Loss Statement
A Profit and Loss statement is one of the most significant financial documents within an organisation. This is because it demonstrates how a company generates their income and manages costs. It can also benefit potential investors, as it highlights income, costs and net profit, it can determine whether an investor decides to work with the organisation or deters them.
The statement has two purposes which are to;
• Highlight the organisations profit and losses

Total Expenses
An organisations total expenses is the measure of the total costs associated with managing and operating an investment fund, such as a mutual fund. These costs consist primarily of management fees and additional expenses, such as trading fees, legal fees, auditor fees and other operational expenses.

Net Profit
Net profit represents the number of sales dollars remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue.

Balance Sheet
A Balance Sheet is a statement that highlights the assets, liabilities and capital of an organisation. It informs them of their balance of income and expenditure over a specific period of time.
There are many benefits to establishing a Balance Sheet within an organisation, a major one being that it reveals their financial status at a precise time. It shows what an entity owns and owes, as well as the amount invested within the

• Intangible assets - all nontangible assets, such as the costs of patents, radio licenses, and copyrights.
• Land - the purchased cost of land, and may also include the cost of land improvements.
• Office equipment - copiers and similar administrative equipment, but not computers.
Current Assets
A Current Asset represents the value of all assets that can be converted into cash.
These include;
• Cash equivalents,
• Accounts receivable,
• Inventory,
• Prepaid expenses,
• Liquid assets.
Current Liabilities
An organisations current liabilities are debts and obligations that should be due within a year. They are bills due to creditors and suppliers. An organisation can withdraw current assets in order to pay their liabilities.
These include;
• Short term debt,
• Accounts payable,
• Accrued liabilities.
Long-term liabilities
An organisations long-term liabilities represents the sources of funds in the form of capital assets.
These include:
• Debentures,
• Mortgage loans,
• Other bank loans.
Capital Investment
The capital investment is the funds invested in an organisation, in order to reach their objectives.
These