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

The essential principles which govern effective delegation, QUESTION 1 ...

QUESTION 1 Elaborate on the essential principles which govern effective delegation. QUESTION 2 Give a detailed account of what you consider to be the three main parts o

Corporate advertising, Corporate Adver tising: A sub functions...

Corporate Adver tising: A sub functions of company communication that different from product publicity or marketing communication. Instead of trying to sell an organiz

Who is an entrepreneur, Who is an entrepreneur? An entrepreneur is a pe...

Who is an entrepreneur? An entrepreneur is a person who is capable to express and carry out the urge; skill, innovative and motivation capability to establish a business or ind

What do you understand by business ethics, QUESTION 1 a) Explain the st...

QUESTION 1 a) Explain the strengths and weaknesses of Corporate Social Responsibility (CSR) b) Discuss the challenges faced by a government in the implementation of CSR poli

Develop a product based organisational structure, Please refer Keells Food ...

Please refer Keells Food Products PLC overview, electronic annual report for year 2009/2010 and the corporate website before answering the following questions. Keells Food Prod

Scenerio and script ( business society and planet), hi, i m just asking abo...

hi, i m just asking about my subject business,society and planet. i just want to make a assign,ent on the scenerio and script about virgin australia any ethical issuse are you make

Define the digital divide, 1. Define the digital divide and suggest ways to...

1. Define the digital divide and suggest ways to close it. 2. Do you consider that the Australian government has achieved the right balance between encouraging Internet adoption

Ethical Organisational Management, Evaluate factors which could influence o...

Evaluate factors which could influence organisational ethics.

Examine the provisions of the law, QUESTION 1 The UNcitral model of law...

QUESTION 1 The UNcitral model of law has influenced the Electronic Transaction Act 2000 and has provided an appropriate legal framework to facilitate electronic transactions an

The way of successful communication, Describe any situation in your experie...

Describe any situation in your experience where the communication was a failure. Analyze the barrier(s) which stood in the way of successful communication. Explain how you would ov

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