While comparing the values of the revenue for the present year with the previous year annual report, there is a much bigger drop that has been found in the collection of profits. Here, the cost of sales is also low when compared to the previous year. Let us consider the gross profit. In the previous year, the gross profit of the company is valued to be £158,263, but for the present year the value of gross profit has been totally reduced to make a value of £131,123. This is mainly caused due to the decrease in the cost of sales and in the revenue. As a well known fact, that, the entire growth and the profit of the company will mainly depend upon the cost of sales and the revenue of the company. This decrease in revenue has led to the decrement and loss in several statements of income that includes administrative expenses, selling and distribution expenses, finance costs, and the taxation. All these income statements are far and distinct lower towards the growth profit values in the previous year. In order to make it clear, the profit statement values before and after the taxation are calculated. This analysis of taxation is also low. Both the values of the profits before and after the taxation are lower at present compared to the values of the previous. All the consequences of less profit have mainly initiated from the administrative expenses, cost of sales and the final revenues.
Even though the income statements are far lower for the previous year, the financial statement has got some growth in the aspects of growth in profits and equity. The property, plant and the equipment prospects have got increased from the values of £36,690 to £46,523. This increase in the asset along with the asset values has led to the increase in values of current assets than the previous year. Each and every value of the inventory, trade receivables and the cash and cash equivalents have got incremented with several hikes and these increments were analyzed to get improved with the value of £160,044 from the depreciated values of £126,409. This increased value will come under the asset category and this will be classified as total assets comprising both the current and the non-current assets. Also the total equity and liabilities of the company along with the dividends for the shareholders have got increased from £126,409 to the final value of £160,044. All this increased value is mainly due to the increments in the current liabilities and due to the decrements in the non-current liabilities of the company on the whole.