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

Discuss the role virtualisation, A) In 1999 a computer failure a t a US cho...

A) In 1999 a computer failure a t a US chocolate-manufacturing company prevented it from shipping Halloween products costing the company a drop of 19% in its third-quarter net inco

What is building of a business case, What is building of a Business case?  ...

What is building of a Business case?  Explain the objectives and levels of business case. Building case is a document that describes a business problem and drafts a proposal f

Benefits of just in time manufacturing, 1. Reduction  of wastes ( defects  ...

1. Reduction  of wastes ( defects  scrap and rework  ) and  increased ability to remain  competitive  through  customer focus and  delivering superior performance of both goods  an

Effective use of interpersonal communication skills, QUESTION "There is...

QUESTION "There is a growing emphasis on the importance of interpersonal communication. This arises from the realization that the greatest challenges to management are not prob

Explain potential conflict between management and company, CRSL has a large...

CRSL has a large auditorium which can cater for 300 people and is ideal for formal balls and functions. The auditorium can also be reconfigured to cater for 100 people. The Seasons

What are the different features of interpersonal skills, QUESTION 1 (a)...

QUESTION 1 (a) What are the different sources of noise and interference that can occur in a communication process? (b) What are the ten aspects of communication that are use

JOB ANALYSIS, CONDUCT A JOB ANALYSIS FOR NEW MANAGER

CONDUCT A JOB ANALYSIS FOR NEW MANAGER

Investment management, You are a manager in the investment industry, whose...

You are a manager in the investment industry, whose role is to provide investment portfolio advice and managementto a client, who is your investorprincipal. You should identify t

Goals of business process reengineering, Goals of Business process reengine...

Goals of Business process reengineering - The goals of business process Reengineering is as follows: - A) To reduce time B) To reduce cost C) For customer satisfaction

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