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

Criteria for market segmentation viability, Question 1: CRM leaders nee...

Question 1: CRM leaders need to review a set of issues whilst thinking about their Strategy Development Process. This normally involves Business Strategy and

Controls on the production systems, Controls on the production systems: ...

Controls on the production systems: 1. No inventory is moved unless authorized to be so by a move card. 2. Each bin contains a fixed exact quantity of inventory no mor

Advantages and implications using databases, QUESTION Explain to the ma...

QUESTION Explain to the management of UTM Ltd the advantages and implications of using databases as opposed to using traditional flat file systems or spreadsheet files within t

Concept of maintenance management, Plant  maintenance consists of all activ...

Plant  maintenance consists of all activities  needed to keep the plant machinery  tools and  equipment services including building and fittings in standards working condition. In

How is line and staff functions affected in organisation, How is the line a...

How is the line and staff functions affected in the organisation? Line and Staff functions: every activities of an organization can be categorised in Supporting and Prima

Line and staff conflict, what are the dynamics and consequences of line and...

what are the dynamics and consequences of line and staff conflict

Explain the concept of market efficiency and its importance, QUESTION (...

QUESTION (a) Explain the concept of market efficiency and its importance (b) (i) Discuss the evidence in relation to weak form market efficiency with reference to the empiri

Limitations of carrying out coherent decision making, Question 1: Being...

Question 1: Being successful in decision making is something that managers obviously desire. Describe the steps which lead to rational decision making and discuss the limitatio

How is market mix illustrated by p variables of marketing, How is the marke...

How is the market mix illustrated by the P variables of marketing? The given figure demonstrates the market mix, additionally sub divided as: The marketing mix is the centra

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