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 concept of the value chain, Question 1: a) Explain how a b...

Question 1: a) Explain how a business could carry out market research. b) Describe the difference between selling and marketing. c) Describe the 4 main international mark

Evaluate the pros and cons of the various modes, Question: Imagine you ...

Question: Imagine you are a local entrepreneur that has developed a revolutionary new personal computer that can perform the same functions as IBM, Apple and Acer computers an

Oil and gas, hi there I''m studying for oil and gas management, how could y...

hi there I''m studying for oil and gas management, how could you help me? thanks

Explain the communication cycle, QUESTION (a) What do you understand by...

QUESTION (a) What do you understand by ‘Communication' and ‘Organisational Communication'? (b) Work requires communication. Why do workers communicate? (c) Describe the v

Define the major classes of risk an organization, What are the four major c...

What are the four major classes of risk an organization evaluates while outsourcing? Explain them. 1. Strategic risks. 2. Operational risks. 3. Result risks. 4. Transac

Explain engineering business functions, Identify and explain engineering bu...

Identify and explain engineering business functions. Draw out an organisation chart for an organisation of your choice and explain the roles and functions of an engineering bus

Operations Management, is it necessary to sacrifice speed in communication ...

is it necessary to sacrifice speed in communication for the sake of a global presence?

Explain reload- types of organisation, Reload a) Banks might be unenth...

Reload a) Banks might be unenthusiastic to lend money to reload (Stock Up) for various reasons, including: Reload being a somewhat unfamiliar business outside of New Zealan

National industrial relations system, QUESTION You have been asked to a...

QUESTION You have been asked to accept an international assignment that involves working in Nigeria for 2 years. Following the general trend, your employer will not provide a p

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