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

Explain assumptions underlying organisational development, Question 1: ...

Question 1: (a) Describe the philosophy and associated implications of the Harvard model of Human Resource Management (HRM) for managing people in the organization. Questio

Impacting upon intercultural communication, QUESTION 1 Distinguish betw...

QUESTION 1 Distinguish between the three broad theoretical frameworks that attempt to provide an explanation and understanding of communication and culture. QUESTION 2

Productions and manufacturing budget based factors, Which factors are the p...

Which factors are the productions and manufacturing budget based? The productions and manufacturing budget based is based onto: 1. Sales budget, 2. Factory capacity (Prod

Explain about the work study, Explain about the work study. Definitio...

Explain about the work study. Definition of Work Study: Work Study, is defined through  British  Standard  Institution,  is  a  generic  word  for  such techniques  mainl

Business analysis using triple triangle framework, how to write a company a...

how to write a company analysis in light of the Triple triangle Framework?

Compare e-business to e-commerce, QUESTION (a) Define e-commerce from a...

QUESTION (a) Define e-commerce from a communication and a commercial perspectives. (b) Compare e-business to e-commerce. (c) Distinguish between Brick-and-mortar and Clic

Total quality management, what are the common barriers to team progress of ...

what are the common barriers to team progress of pepsico?

Carrying cost, Also known as the loading cost or the storage cost carryi...

Also known as the loading cost or the storage cost carrying cost represents the cost that is associated with storing an item in inventory. It is proportional to the amoun

Marketing environment, How to find what the marketing environment is for a ...

How to find what the marketing environment is for a company

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