A target financial statement, as the term clearly suggests, is a layout of all financial transaction conducted and their respective and accurate representation in balance sheet as income statements and cash flow reports. Such a statement can be prepared by any profit-making organization, such as a business firm, educational institutes, multinational companies, etc. as well as by some individual so as to assess the financial improvement on the basis of achievement of economic target.
Sample Target Financial Statement:
Name of the Company: TechnoMantra Pvt. Ltd.
Address: 56-B/ I, Lakshmi Apartment
Ring Road, Gurgaon
Contact details: 0124 – 76893480
Target financial statement prepared on: 4th July, 2011
Financial statement prepared by: Mr. Vishal Aggarwal
Department of Finance and Accounts
Objectives of target financial statement:
- To provide a clear report of all transactions conducted in the given fiscal year.
- To study all facts and figures accurately.
- To compare figures with the target turnover.
- To provide a comprehensive statistics of all differences, be it major or minor.
- To devise strategies for covering up for all losses and also to maintain the profit level, as the case may be.
Target financial statement for 1st January – 30th June, 2011
Financial Particulars Amount ($)
- Income from Revenues 650000
- Cost of raw materials purchased 530000
- Sales income 1780000
- Depreciation costs 38000
- Amortization expenses 9000
- Expenses on Income Taxes 125000
- Interest amounts 7800
- Income from other investments 76000
- Administration and general sales costs 59000
- Operational earnings 48000
Net profit 1785200
Target profit 1560500
Gross income 224700
[Signature of Accounts Manager]