P&l for masks r us ltd, Business Management

Assignment Help:

P&L for Masks R Us Ltd:

a)

 

$

$

Sales ($8 * 15,000)

 

120,000

Cost of Goods Sold:

 

 

Opening stock

9,000

 

Purchases

40,000

 

Less Closing Stock

8,000

 

 

 

41,000

Gross Profit

 

79,000

Less Overhead expenses

 

18,000

Net Profit

 

61,000






b) Gross profit is healthy since it represents around 66% of sales income. Net profit is also healthy, at over 50% of sales returns, because overheads are not important. However, since the P&L account is only a snapshot of the position of Masks-R-Us, no firm conclusions can be made. To make a suitable judgement of the financial position, the firm's cash flow statement, cash flow forecast and balance sheet should be used. In addition, there is a need to benchmark the data, i.e. inter-firm comparisons and historical.

 


Related Discussions:- P&l for masks r us ltd

Business communication, You work for an accounting firm. Your supervisor as...

You work for an accounting firm. Your supervisor asks you to write a report on a new photocopier which the accounting firm can purchase. In addition to information about its hardwa

Describe effective listening to your new recruits, QUESTION Effective c...

QUESTION Effective communication at the workplace is not entirely dependent on the speaker, but rather it also relies on the receiver's ability to grasp the message. As the Hum

Production problem, Problem 1 (a) Explain what is done during the subse...

Problem 1 (a) Explain what is done during the subsequent audiovisual production phases: (i) Pre-production (ii) Production (iii) Post-Production (b) Mention one prod

Office management, identify and explain the major problems in the case

identify and explain the major problems in the case

Hire Purchase, AskLet us first see and understand those amendments. The fol...

AskLet us first see and understand those amendments. The followings are excerpts and extractions from the bill tabled in Parliament. Clause 7 of the Bill seeks to amend Section 16

Concept of leadership and management, Understand the concept of leadership ...

Understand the concept of leadership and management, and demonstrate sound knowledge and understanding of the concepts, theories and disciplines which underpin business and managem

What are the basic tenets of ethical behaviour, Ethical behaviour is a nece...

Ethical behaviour is a necessity to build trust and if a company is able to maintain this trust-relationship with the internal and external stakeholders, then we can call that comp

Explain the step in developing a global outsourcing strategy, List and expl...

List and explain the seven steps in developing a global outsourcing strategy. Seven steps in developing a global outsourcing strategy - Segment the marketplace, Project change

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd