GEMSTAR PRODUCTIONS
Financial Statement Analysis – September 2022
Taylor DePrimo

OVERVIEW
• Overall Financial Condition of Gemstar
Productions
• Overview of Important Financial
Documents
- Balance Sheet
- Profit & Loss Statement
- Statement of Cash Flow
• Internal Controls
• Wrap Up

FINANCIAL CONDITION
Our overall financial condition is GOOD!

THE
BALANCE
SHEET

PROFIT
AND
LOSS

BUDGET VARIANCES
Event Revenue
Actual: $11,400 Budget: $12,000
Variance: Attendance down due to severe weather
Insurance
Actual: $1,200 Budget: $1,500
Variance: Insurance rates dropped in local area
Office Supplies
Actual: $667 Budget: $1,000
Variance: Digital documents reduced ink consumption
Payroll
Actual: $3,200 Budget: $3,500
Variance: 1 employee on disciplinary unpaid leave
Electricity
Actual: $220 Budget: $400
Variance: Less A/C utilization due to cooler temperatures

STATEMENT
OF CASH
FLOWS

CURRENT RATIOS
Current Ratio: $65,066 (Current Assets) divided by $40,233 (Liabilities)
Current Ratio = 1.617 - Good!
Working Capital: $65,066 (Current Assets)divided by $40,233 (Liabilities)
Current Ratio = 1.617 – Good!
Debt to Assets: $1,420 (Short Term) + $40,000 (Long term)
divided by
$65,066 (Total Assets)
Current Ratio = 63.65% - Fair
Return on Equity: $4,833 (Net Income) divided by $20,000 (Equity)
Current Ratio = 24.1% - Good!

INTERNAL CONTROLS
Daily Balance
Reconciliation
Physical Control
of Assets
Quality
Assurance Team
Standardized
Documentation
Unique User
Accounts

RECAP
Balance Sheet Profit and Loss
Statement
Statement of
Cash Flows
Internal
Controls
Accounting
Ratios
Budget
Analysis