P&L for Masks R Us Ltd:

a)

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.