Based on the below information, what clarification do I need to seek from the accountant.

Income Statement Analysis:

1. Revenue Growth: There was a significant increase in revenue from 2023 to 2024 (from $8,204,700 to $11,815,044), which indicates positive growth potential.
2. Cost of Sales: The cost of sales decreased from $8,423,201 in 2023 to $4,659,603 in 2024, improving the gross profit margin significantly.
3. Gross Profit Improvement: The gross profit shows a positive turnaround, going from a negative gross profit in 2023 (-$218,501) to a positive $7,155,441 in 2024. This is a strong indicator of the company's improving operational efficiency.
4. Net Profit: The company moved from a loss in 2023 (-$1,266,987) to a small profit in 2024 ($96,110). This turnaround is a positive indicator but shows tight net profit margins.

Financial Position Analysis:

1. Assets: Total assets have increased significantly from $119,615 in 2023 to $543,171 in 2024. This increase is positive, but a higher proportion of assets in tangible assets might affect liquidity.
2. Lease Liability: The presence of lease liability ($447,061) suggests fixed obligations which need careful management for liquidity purposes.

Cash Flow Analysis:

1. Cash Deterioration: The net cash flow from financing activities shows a decline, notably entering negative territory at -$119,615 in 2024 (after adjustments). This would need to be addressed for sustaining business operations.
2. Capital Movements: The large capital draw ($3,208,809) compared to the paid-in capital ($3,089,194) suggests a cash outflow challenge that may affect liquidity.

Recommendations for Creditworthiness:

• Improving Liquidity: While the revenue and gross profits are promising, the company should work on improving liquidity by increasing net cash inflows. Reducing capital draws or postponing them could improve cash on hand.
• Debt Management: Evaluate and manage lease liabilities efficiently. Ensure operational cash flow can meet these obligations, alongside other expenses.
• Sustaining Profit: Work on maintaining or increasing profit margins to enhance the overall financial health of the business.

To verify the income of the owner as presented in the financial statement, we need to analyze the Statement of Profit and Loss and other comprehensive income and ensure that the results reflected in the cash flow statement align.

Statement of Profit and Loss Analysis

• Revenue for 2024: $11,815,044
• Cost of Sales for 2024: $(4,659,603)
• Gross Profit for 2024: $7,155,441

Calculation: [ \text{Gross Profit} = \text{Revenue} - \text{Cost of Sales} = 11,815,044 - 4,659,603 = 7,155,441 ]

• Administration, Marketing, and Selling Expenses for 2024: $(6,925,319)
• Operating Profit for 2024: $230,122

Calculation: [ \text{Operating Profit} = \text{Gross Profit} - \text{Admin, Marketing, and Selling Expenses} = 7,155,441 - 6,925,319 = 230,122 ]

• Finance Cost for 2024: $(134,013)
• Profit/Loss for 2024: $96,110

Calculation: [ \text{Profit/Loss} = \text{Operating Profit} - \text{Finance Cost} = 230,122 - 134,013 = 96,109 \ (\text{Rounded to } 96,110) ]

• Total Comprehensive Income for 2024: $96,110

The income detailed in the Profit and Loss statement for 2024 matches the detailed calculations.

Statement of Financial Position Analysis

• Cash and Cash Equivalents for 2024: $96,110
• Total Assets for 2024: $543,171
• Capital Employed for 2024: $543,171
  • The value reported here matches the sum of tangible assets and cash, indicating that the capital structure is balanced as represented.

Cash Flow Statement Analysis

• Cash Flow from Financing Activities:
  • Paid in Capital in 2024: $3,089,194
  • Capital Draw in 2024: $(3,208,809)
  • **Net cash generated from Financing

To determine whether the total income from the business is JMD$12M over the last 12 months or if the average income is JMD$1,065,068.58, we need to analyze the data provided in the Statement of Profit and Loss:

Total Income for the Year 2024:

The revenue for 2024 is JMD$11,815,044.

Average Monthly Income Calculation:

If you want to calculate the average monthly income based on the annual revenue figure (assuming no other income or variations), you would divide the total income by 12 months.

[ \text{Average Monthly Income} = \frac{\text{Total Annual Income}}{\text{Number of Months}} = \frac{11,815,044}{12} = 984,587 ]

This calculation does not exactly match the JMD$1,065,068.58 figure mentioned in your question. This discrepancy suggests that either the figure is computed using different parameters not provided in the financial statement or that it might be a miscalculation.

Profit/Loss for the Financial Period:

The Profit/Loss for the financial period (net of all expenses) shows a final figure of JMD$96,110 for 2024.

Based on the information provided, the correct measure related to total revenue is JMD$11,815,044. This figure refers to total income (revenue) from business operations over the financial year. The average monthly figure you mentioned (JMD$1,065,068.58) does not match our straightforward calculation of JMD$984,587 from the annual income. Therefore, more context or data is needed to validate or interpret that specific average income figure correctly.

To determine whether the total income from the business is JMD$12M over the last 12 months or if the average income is JMD$1,065,068.58, we need to analyze the data provided in the Statement of Profit and Loss:

1. Total Income for the Year 2024:
   • The revenue for 2024 is JMD$11,815,044.
2. Average Monthly Income Calculation:
   • If you want to calculate the average monthly income based on the annual revenue figure (assuming no other income or variations), you would divide the total income by 12 months.

[ \text{Average Monthly Income} = \frac{\text{Total Annual Income}}{\text{Number of Months}} = \frac{11,815,044}{12} = 984,587 ]

This calculation does not exactly match the JMD$1,065,068.58 figure mentioned in your question. This discrepancy suggests that either the figure is computed using different parameters not provided in the financial statement or that it might be a miscalculation.

1. Profit/Loss for the Financial Period:
   • The Profit/Loss for the financial period (net of all expenses) shows a final figure of JMD$96,110 for 2024.

To assess whether the client can get a business credit card based on the provided Statement of Profit and Loss, we need to analyze the financial performance as shown in the 2024 and 2023 statements. Here's a breakdown:

2024 Financial Analysis

1. Revenue: $11,815,044
2. Cost of Sales: ($4,659,603)
   • Gross Profit: $7,155,441
3. Administration, Marketing, and Selling Expenses: ($6,925,319)
4. Operating Profit: $230,122
5. Finance Cost: ($134,013)
6. Profit for the Financial Period: $96,110
   • This is the "bottom line" net income for the year.

2023 Financial Comparison

1. Revenue: $8,204,700
2. Cost of Sales: ($8,423,201)
   • Gross Loss: ($218,501)
3. Administration, Marketing, and Selling Expenses: ($1,048,487)
4. Operating Loss: ($1,266,987)
5. Finance Cost: Not specified for 2023
6. Loss for the Financial Period: ($1,266,987)

Credit Card Application Considerations

1. Profitability:
   • 2024: The business turned profitable with a net income of $96,110 after a significant loss in 2023.
   • Improved revenue and control over costs indicate potential financial stability.
2. Expense Management:
   • Gross margin improved from negative in 2023 to a healthy positive in 2024, showing better cost management.
   • However, the growth in administration, marketing, and selling expenses needs monitoring.
3. Creditworthiness Factors:
   • The company's ability to recover from a loss to profitability suggests improving business health.
   • The significant difference between operating and finance costs could suggest existing obligations. An assessment of current liabilities and previous credit history (not shown here) is crucial in the decision-making process.

Conclusion and Advice

• Income Statement Insight: The net income for 2024 is $96,110.
• Credit Card Eligibility: The improvement in financial performance is a positive indicator and could support a credit card application.
• However, lenders often evaluate more than just profitability: credit history, existing financial obligations