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

Proposal to shift focus from one product to another , Proposal to Shift Foc...

Proposal to Shift Focus from One Product to Another in a Company The new proposal by marketing team to shift focus to offering products that are niche in nature by virtue of r

Explain offshoring value model of offshoring, Explain Offshoring's Value Mo...

Explain Offshoring's Value Model of offshoring. Offshoring's Value Model - theory. Four strategies - Strategic sourcing, Commodity sourcing, Value sourcing, Be

Ethics, Ask question #Minimum 100 words accePhase 1: (5%)pted#

Ask question #Minimum 100 words accePhase 1: (5%)pted#

Finance, finance via internet

finance via internet

Your own business strategy, how would i analyze my company product for six ...

how would i analyze my company product for six semester

Recent macro developments, In 2006, European economy performed well with an...

In 2006, European economy performed well with an economic growth of 3%, which was the highest since 2000. This is a sign that the economy is on the road to recovery and in fact mos

Mba, b. A paper mill produces two grades of paper viz., X and Y. Because of...

b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y pape

Internal integration - organizational culture, Internal Integration - organ...

Internal Integration - organizational culture Culture helps members develop a collective identity and know how to work together effectively. It is culture that guides day-to-d

What are the pitfalls and benefits of planning, Question 1: i) Differen...

Question 1: i) Differentiate between internal and external environment in which an organization operates. ii) How managers will reduce the influence of the external environ

Marketing Plan in employee preformance Startegic, I''m kindly asking to mak...

I''m kindly asking to make an assignment against "Marketing Plan in employee performance Strategic" in 2000 words as per first attachment, also I need a Report against the assignme

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