Present condition of beauty view cosmetic. It's short financial study. how was it is. Please comment.

1. A PROJECT WORK ON
BEAUTY VIEW COSMETIC
Attariya, Kailai
Submitted by
Ramesh Pant
BBM 3rd
semester
Roll. No. 18
A Project Work Report
Submitted to
Kailali Multiple Campus
Dhangadhi, Kailali
BBM Faculty
2071 Magh 20

2. KAILALI MULTIPLE CAMPUS
BBM Faculty
Dhangadhi, Kailali
RECOMMENDATION
This is to certify that the field work assignment
Submitted by
Ramesh Pant
A PROJECT WORK ON
BEAUTY VIEW COSMETIC
ATTARIYA, KAILALI
This Field Work assignment report is approved by
………………………
Mr. Dr Padam Raj Joshi
(Subject Teacher)
Kailali Multiple Campus
Dhangadhi, Kailali

3. ACKNOWLEDGEMENTS
Attariya is the gate way and trade point of the far-western region. Due to the mass
production area and availability of various Cosmetic Shops in Market, I think it is
necessary to select the Cosmetic shop and to analyze its condition. In this regard, it
is my pleasure to submit this report entitled. "A Project Work on Beauty View
Cosmetic, Attariya, Kailali."
To complete this work, many valuable suggestions and assistance have been taken
from intellectuals, professionals and from various sectors. So, for their great
contribution, I would like to express my gratitude to all these helpful hands.
I would like to express my sincere gratitude to subject teacher Mr. Dr Padam Raj
Joshi for this valuable opportunity, and their guidance and encouragement
throughout in preparation of this project work. I would like to thanks to Proprietor
of Beauty View Cosmetic for cooperating me in consulting various data and other
relevant materials.
Ramesh Pant
(Researcher)
Kailali Multiple Campus
Dhangadhi,, Kailali

4. 1. Introduction about Firm:
Beauty View Cosmetic (BVC) is a small Cosmetic and Gift shop which is
small business-related. It is a sole-proprietorship business organization established
with the authorized capital of Rs 1, 00,000 in 2066/08/24. Mr. Ram Chandra Joshi
is a proprietor of the business. The shop is registered after 2 month of starting as
private firm act with Registration No. 2066/10/02. The shop is situated at the way
of Mahendranagar Road Attariya, Kailali. The shop is placed at near the Pandeya
mil. The shop is operating by him and his wife. So nobody can be employing
beside them. The shop is dealing with Cosmetic, gift items & greetings especially.
2. Objective Of the Study
The main objective of the study has been pointed below:
1. To collect the information about different sources of financing and their cost
of the Beauty View Cosmetic business.
2. To evaluate the Income Statement & Balance Sheet of the Beauty View
Cosmetic business.
3. To calculate the financial position of the Beauty View Cosmetic business.

5. 3.Presentation and Analysis of Data
3.1 INCOME STATEMENT OF BVC
Beauty View Cosmetic
Attariya, Kailali
Income Statement
For the year ended 2070/71
Particular Amount (Rs.) Amount (Rs.)
Sales…………………………………………………………………………
Less: Cost of Goods Sold…………………………………………
Gross Profit………………………………………………………………
Less: Operating Expenses
PersonalOverheads………………………………………
Rent………………………………………………………………
Electricity………………………………………………………
Material used…………………………………………………
Office & Stationary………………………………………..
Provision for loss……………………………………………
Other………………………………………………………………
Income before Interest…………………………………………….
Less: Interest……………………………………………………………
Net Income…………………………………………………………….
3,24,969
1,48,469
1,76,500
61,500
28,770
5,000
9,550
5,090
1,560
5,000
6,530
1,15,000
10,000
1,05,000

6. 3.2 BALANCE SHEET OF BVC
Beauty View Cosmetic
Attariya, Kailali
Balance Sheet
As on 31st
Aasad 2071
Particular Amount (Rs.) Amount (Rs.)
Assets
Current Assets
Cash…………………………………………………………………….
Inventory…………………………………………………………….
Credit Sales………………………………………………………….
Fixed Assets………………………………………………………….
Total Assets
Liabilities andOwner's Equity
Current Liabilities
Creditors……………………………………………………………..
Long-term Loan
Owner's Equity
Capital…………………………………………………………………
Net Income…………………………………………………………
Total Liabilities and Owner's Equity
34,000
3,89,250
49,570 4,72,820
1,41,500
1,58,320
6,14,320
1,58,320
2,50,000
1,05,000
1,00,000
3,55,000
6,14,320

7. 3.3 RATIO ANALYSIS:
i. Current ratio:
Currentratio= 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠÷ 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
= 4,72,820 ÷ 1,58,320
= 2.96:1
ii. Days Sales Outstanding (DSO):
DSO = (360 × 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒) ÷ 𝑆𝑎𝑙𝑒𝑠
= (360 × 49,570) ÷ 3,24,969
= 54.91 ≈ 55 Days
Note: It is calculated on the basis of Accounting year or 360 days.
iii. Inventory Turnover:
InventoryTurnover= 𝑆𝑎𝑙𝑒𝑠 ÷ 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
= 3,24,969 ÷ 3,89,250
= 0.83 Times
iv. Total Assets Turnover (TAT)
TAT = 𝑆𝑎𝑙𝑒𝑠 ÷ 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
= 3,24,969 ÷ 6,14,320
= 0.53 Times
v. Profit Margin
ProfitMargin = (𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 ÷ 𝑆𝑎𝑙𝑒𝑠) × 100
=(1,05,000 ÷ 3,24,969) × 100
= 32.31 %
vi. Return on Assets (ROA)
ROA = (𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 ÷ 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠) × 100
=(1,05,000 ÷ 6,14,320) × 100
=17.09 %
vii. Return on Capital (ROC)
ROC = (𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 ÷ 𝐶𝑎𝑝𝑖𝑡𝑎𝑙) × 100
= (1,05,000 ÷ 2,50,000) × 100
= 42.00 %
viii. Return on Equity (ROE)
ROE = (𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 ÷ 𝐶𝑜𝑚𝑚𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦) × 100 =……. %
Note: We can't calculateROE for this firm. Because it's sold trading firm,in this types of firmwe can't
issuethe share.

8. 4.Conclusion:
We can reach in the conclusion by commenting on the financial
position of a BVC firm. Comments on financial position of BVC are as
follows:
i) In this firm we can see current ratio is 2.96:1 and the standard
for current ratio is 2:1 so higher current ratio is an indication of
strong financial position.
ii) DOS of this firm is 55 days, it is satisfied. For the good financial
position of firm it should be low.
iii) 0.83 times found Inventory turnover and TAT is 0.53 times.
Both results should be more.
iv) Profit Margin is 32.31%. It is below the 50% so it was not
satisfied.
v) ROA is 17.09% it should me more and ROC of this firm is
42.00% it is not bad.
In conclusion, the position of Beauty View Cosmetic is day by day
increasing and all ratios show the firm Beauty View cosmetic was not
in bad condition.