Profit & Loss Statement 30 Jun 2011Meeting to Cycle Pty Ltd

REVENUESales

Sales of bicycle and accessories 340,000Coaching income 160,000Repair shop income 40,000Other income (eg. Cycling tours) 10,000Sales -

Total Revenue 550,000Freight Collected

Total Revenue 550,000

DIRECT COSTCost of Goods Sold 221,000

00

Total Cost of Good Solds 0Total Direct Costs 221,000

GROSS PROFIT 221,000

OPERATING EXPENSES Accountancy fees 3,500Advertising 7,500Bank fees 1,000Computer expenses 3,500Credit card fees 1,200Depreciation expense ** 5,000Electricity 8,500Entertainment 6,000Insurance 5,000Interest expense 15,833Legal expenses 2,000Printing, stationery and postage 7,500

40,000Rent ($4,000 per month) 5% increase p.a.

Repairs and Maintenance 6,000Salaries and wages – Directors 50,000Salaries and wages – Other staff 116,000Staff amenities (tea, coffee, biscuits) 1,000Superannuation (@ 9% of total salaries) 15,000Telephone and facsimile charges 3,000Other costs 20,000

Bank Charges 0Freight Paid 0Set-Up Cost

Opening party 5,500Fit-out 83,600

Workshop 7,040 Displaying stock 28,160

21,120 Office 14,080 Install tiles 13,200

Cash registers 9,680Computers 27,060Photocopying machine 4,180Facsimile machine 880Timber bookcases 6,820Television sets 9,680Fluorescent lighting system 20,240Carpets 28,820

8,360

Total Set-Up Cost 204,820Total Motor Vehicle Expenses 0Office Supplies 0 Rent 0Telephone and internet 0Total Expenses 522,353

NET PROFIT -301,353

Indoor windtraining sessions

MYOB Accounting Plus Version 18 and other retail-based computer software

Under ITAA 1997 S20-30- "upgrading assets to meet GST obligations " are deductible BUT we should consider what is "GST obligation". The above A NEW TAX SYSTEM (INDIRECT TAX AND CONSEQUENTIAL AMENDMENTS) ACT (NO. 2) 1999 - SCHEDULE 5 - Income tax deductions for GST-related expenditure : S25-80(d) &(e), we should consider pre-GST annual turnover for income year.

Our fit-out has been installed tiles ($13,200) in 2010 (� Commencement date of the business will be 1 September 2010.), under S25-80 (d), this upgraded plant is post 1 July 2000 so this item is undeductible.

Fit-out GST Exclusive GST

Workshop 10% 6,400 10%

Displaying stock 40% 25,600 10%

Indoor windtraining sessions 30% 19,200 10%

Office 20% 12,800 10%

Instal tiles 12,000 10%

64000.00 76,000

GST Inclusive

7,040

28,160

21,120

14,080

13,200

83,600