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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.
MHow in a free society like the U.S., can a small group of people continually control so much of the wealthiness 100 words accepted#
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