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

Logical analysis of daily business, Jane Parton, the proprietor of Deli Pa...

Jane Parton, the proprietor of Deli Parton, sells specialty breads for $3.95 each.  She buys these from a baker-supplier for $2.45 per unit. Since Jane wants to maintain Deli Pa

Explain the main types of communication networks, QUESTION (a) Communic...

QUESTION (a) Communication in business organizations is essential to transfer information from one level to another and the effectiveness of management largely depends upon it.

Joint ventures may or may not be preferred to wholly owned, QUESTION ‘T...

QUESTION ‘The internalization theory posits that firms would have a strong incentive to avoid joint venture agreements since they are viewed as second best alternatives in allo

Practise of management, if you were the profffessor and you knew what was g...

if you were the profffessor and you knew what was going through vincent''s mind,what would you say to vincent

What do you mean by line and staff organisation, What do you mean by Line a...

What do you mean by Line and Staff Organisation? Line and Staff Organisation: When the industry grew within size and complexity, the line executives could not carry

Transformational leadership, Transformational leadership: The transfor...

Transformational leadership: The transformational leadership style depends on high levels of communication from management to meet goals. Leaders motivate employees and enhanc

Target Market Basis, what is Size of Customer, Type of Customer And Need fo...

what is Size of Customer, Type of Customer And Need for Service?

Marketing managment, Explain the factors that affect the choice of distribu...

Explain the factors that affect the choice of distribution channel that a company uses. describe the functions of wholesalers in the distribution chain

Describe briefly the five stages of group development, QUESTION 1 a) Ho...

QUESTION 1 a) How can an understanding of the team roles as developed by Meredith Belbin help a manager in communicating effectively with his/her team? b) Discuss the major

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