Building Financial and Income Statement- myassignmenthelp.com

Question: Discuss about theBuilding Financial and Income Statement. Answer: First Part There will be certain source of revenues for this business. The majority portion of the revenue will come from the sales of construction projects like flats, houses, business spaces and others. This will be considered as segment revenues. In addition, other sources of revenue will be sale of goods, revenue from interest, various contracts, management service fees and others. This will be considered as revenue from other business operations. Revenue drivers refer to some important aspects to revenue models that help in the increase of revenues for the companies. In this particular construction business, there is a major revenue driver. This revenue driver can be described as Square Feet Area x Rate per Square Feet. It can be seen that all the products of a construction business like flats, business spaces and others are sold based on square feet. For this reason, this is considered as the main driver (Akan, Ata Dana, 2015). The revenue structure of my company is shown below: Revenue Structure Residential Commercial Particulars Amount Amount Revenues from Segment operations Sales from Residential and Commercial Spaces XXX XXX Total XXX XXX Revenues from Other operations Sale of other Goods XXX XXX Revenue from Interests XXX XXX Revenues from various Contracts XXX XXX Management Service Fees XXX XXX Total XXX XXX Total Revenues XXX XXX From the above discussion, it can be said that there are two major sources of revenues in the company. They are revenues from segment operation and revenues from other operations. In the revenue structure, implementation of advanced technology will help to drive the revenue of the company. The company will be able to deliver high quality and luxurious construction projects to its customers with the help of latest technologies. In addition, latest IT technologies will help to reduce various costs of the company. All these aspects together will help to increase the revenue of the company (Wang, 2012). Second Part I shall use some specific sources for the comparisons between my company and the benchmark company. First, I shall use the annual report of the benchmark company in order to find the accounting regulation and structure of revenue and others. Second, I shall collect the required information of the benchmark company from the official website of the company. I shall use these two sources for the comparison (?ihk et al., 2012). Third Part I have selected one of the major construction companies named Global Construction Service Limited (GCS) as the benchmark company. For GCS, revenues from external sources include two sources; they are segment revenue and intersegment revenue. Other sources of revenues include hire of equipment and related services; revenue from various contracts; sales of other sources; revenues from management services, revenues from interests and others. The revenue structure of GCS is shown below: From the above discussion, it can be seen that there are some specific sources of revenue for the company. They are revenue from external customers and revenue from other sources. The above figure shows the division of the sources of revenue for the company (gcs.group, 2017). When compare my companys revenue structure with GCS, it can be seen that there is many differences between the revenue structure of GCS and my company. In GCS, one of the major sources of revenue for the company is the sales of residential as well as business spaces. In case of my business, this also is the major source of revenue. After that, in case of GCS, a large portion of revenue comes from different other sources like sale of other products, management fees, interests and others. In case of my business, major portion of revenue also comes from the other sources. Thus, it can be said that there is not much difference between the revenue structure of GCS and my company (gcs.group, 2017). Fourth Part According to the cost of goods sold structure of GCS, the cost of goods sold is deducted from the total amount of revenue of the company (gcs.group, 2017). One of the major parts of cost of goods sold is the expense for the consumption of raw materials. The same is also applicable in my company. As per the accounting rules, the total amount of cost of goods sold will be deducted from the total amount of revenue. Thus, there is no difference. In case of GCS, some specific expenses come under the head of operating expenses; they are consumable expenses, service expenses, occupancy expenses, service expenses, repair expenses, maintenance expenses, depreciation expenses, amortization expenses, impairment expenses, finance costs and others (gcs.group, 2017). In case of my company, some of the major operating expenses are rent and rates, interest expenses, travelling expenses, depreciation expenses, repair expenses, maintenance expenses, amortizations expenses and many others. Thus, from the above discussion, it can be seen that there has not been any major differences between the operating expenses of my company and GCS. Fifth Part There are some specific techniques for the reduction of costs in the business. First, it is needed for the businesses to reduce the cost of production. For this reason, companies can implement effective waste management strategies. Second, it is required to reduce the financial expenditures of the company with the help of effective financial strategy. For this reason, it is needed for the companies to use effective time management strategies. One of the major aspects is that the companies need to use the business resources in the most optimal manner (Fortuna, Nunnari Gallo, 2012). I can get some service free or low rates. First, I can get my business listed in Google as it can be done in very low price. Second, I can upload the details of my business in social networking cite with free of cost. I can also display the products in YouTube on free of cost. There are some equipments that I need to buy or take in lease for my business. They are wheel loader, grader, landfill contactor, folder conveyor on a tracked grinder, reconditioned caterpillar 825G soil compactor, a wheeler front loaded tractor equipped with a large bucket elevated by hydraulic rams and others. References Akan, M., Ata, B., Dana, J. D. (2015). Revenue management by sequential screening.Journal of Economic Theory,159, 728-774. Board, S., Skrzypacz, A. (2016). Revenue management with forward-looking buyers.Journal of Political Economy,124(4), 1046-1087. ?ihk, M., Demirg-Kunt, A., Feyen, E., Levine, R. (2012). Benchmarking financial systems around the world. Fortuna, L., Nunnari, G., Gallo, A. (2012).Model order reduction techniques with applications in electrical engineering. Springer Science Business Media. https://www.designcity.com.au, D. (2017).Investors | Global Construction Services Limited.Gcs.group. Retrieved 3 September 2017, from https://www.gcs.group/investors/ Wang, X. L. (2012). Relationship or revenue: Potential management conflicts between customer relationship management and hotel revenue management.International Journal of Hospitality Management,31(3), 864-874.