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

Driving forces of business, The Driving Forces of Business What enters y...

The Driving Forces of Business What enters your mind when you hear the word business? Do you think about IBM? Or do you think about the mom-and-pop grocery stores? Businesses ra

Organisations and behaviour, discuss the impact that different leadership s...

discuss the impact that different leadership styles may have on motivation in orhanisations

Determinants at the organizational and community level, 1. Develop a handou...

1. Develop a handout that clearly outlines the distinguishing facets of 2 different models & interventions involving determinants at the organizational, community, and society leve

What is video-conferencing and what are its requirements, QUESTION An a...

QUESTION An area where telecommunication is gaining ground among businesses and academics is video-conferencing. However Video-Phone systems have existed for years, but have no

Business, Sam bought a leather corner sofa and chair from SCS Edinburgh for...

Sam bought a leather corner sofa and chair from SCS Edinburgh for £5,490 in July 2009. Less than a year later, she noticed that the sofa’s stitching had started to unravel and repo

Describe the role of the secretary, Question 1: As our society becomes ...

Question 1: As our society becomes increasingly diverse, the ability to communicate with members from other cultures becomes a business necessity. Explain four intercultural di

Eclectic Paradigm.., ‘It should be obvious that simply the signing of a tre...

‘It should be obvious that simply the signing of a treaty to remove barriers to trade does not have any effect on the intra-group trade if the prospective partners do not demand ea

Question, What are the good examples of using public management tools? (in ...

What are the good examples of using public management tools? (in what fields)

What are the different types of non-verbal communication, QUESTION 1 (a...

QUESTION 1 (a) How do cultural differences impact upon International Business? (b) The domestic society is made up of a variety of co-cultures that exerts a powerful effect

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