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

Describe the basic control process, QUESTION 1 Explain how the nature o...

QUESTION 1 Explain how the nature of a management job creates the possibility for ethical abuses. Identify common kinds of workplace behaviour and support your answer with exam

Production capacity and storage facility, The capacity of production sys...

The capacity of production systems as well as the nature of storage faculties considerably affects the inventory policy of an organization, e, g capacity for heating oi

Explain the various modules in detail with example, Question 1 Normally wh...

Question 1 Normally when we review a potential software suppliers and we tend to focus only on the potential product's functionality and cost. Though these elements are significan

Explain the term ethical dilemma and how to deal with it, QUESTION 1 (a...

QUESTION 1 (a) Define the term management by objectives (MBO) and outline its unique features (b) Enumerate and explain the two main organizational structures? QUESTION

Evaluating capital-expenditure, Evaluating Capital-Expenditure Proposals at...

Evaluating Capital-Expenditure Proposals at Biotechnique Chemicals In submitting a project for senior-management approval, the proposers had to identify it as belonging to one

Describe briefly the sources of attitude formation, Question 1: a) Ide...

Question 1: a) Identity the four types of work teams. b) Describe the three elements which constitute a work team. c) Explain how do Industrial Psychologists help orga

Advise the parties, On the 10 th of March 2009 Moot enterprise Ltd posted ...

On the 10 th of March 2009 Moot enterprise Ltd posted an offer to sell 1,000 set of encyclopedias to the Ministry of Education for the price of Rs 1,000,000 and that the offer wou

Types of always better control analysis of inventory control, What are the ...

What are the groups of the inventories of Always Better Control Analysis of Inventory Control? The inventories are classified within three groups as illustrated below: • A-T

The four seasons corporation, What market segment will the company be targe...

What market segment will the company be targeting? Why?

Understand by the term business process re-engineering, Question: a) Ou...

Question: a) Outline the main sections of a feasibility report and briefly explain the purpose of the typical contents of each section. b) Examine the factors management mus

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