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

Case study with solution., This case has been framed in order to test the s...

This case has been framed in order to test the skills in evaluating

Question, What are the good examples of using public management tools? (in ...

What are the good examples of using public management tools? (in what fields)

Write a short note on information system analysis, Q. Write a short note on...

Q. Write a short note on Information System Analysis? Ans. System analysis is the analysis of the trouble that the organization will try to solve with an information system. It

What types of organisations, 1. Discuss what types of organisations these a...

1. Discuss what types of organisations these are and how this might affect the types of accounts they produce and who might use them and how. 2. Compare the business environment f

Benefit of product oriented layout, Benefit of Product Oriented Layout ...

Benefit of Product Oriented Layout Why Product Oriented Layout is more efficient than Process Oriented? Though going for a Product or Process oriented layout depends upon

Classical and scientific approach to organization, Question: "Although ...

Question: "Although there may be general agreement from time to time on what constitutes best management practice, the theoretical ingredients will tend to vary. Management th

What is management, QUESTION (a) What is management? Use your own words...

QUESTION (a) What is management? Use your own words to define the concept Discuss the various functions which constitute the process of management (b) Describe the skills

Twelve trees, Ask questiWhat steps can Twelve Trees take to ensure that the...

Ask questiWhat steps can Twelve Trees take to ensure that the agreement they have with Defang Hezuo''She continues to be profitable and stable well into the future?on #Minimum 100

Phases of business process reengineering, According to perter F. Drucker R...

According to perter F. Drucker Reengineering is new and it has to be done. The tasks experts agree upon to successfully perform BPR can be grouped into seven steps or p

Knowledge and independence worked for entrepreneur, How are knowledge and i...

How are knowledge and independence worked for an entrepreneur? Knowledge: An entrepreneur has complete knowledge regarding all the technicalities of his business, this is tec

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