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

Pharmaceutical services industry, Paisano Pharmacies, a fictitious business...

Paisano Pharmacies, a fictitious business in the pharmaceutical services industry, is owned by VictorPaisano. Currently, Paisano has two pharmacieslocated in Killeen and Temple, Te

Types of different barriers to successful communication, What are the types...

What are the types of different barriers to successful communication? Various barriers to successful communication are as illustrated here: a. More levels within the organis

What is the role of leadership in the management literature, What is the ro...

What is the role of leadership in the management literature? In the management literature, each manager is a leader there. Leadership is a procedure of interpersonal affect. Th

What is business process execution language, Business Process Execution Lan...

Business Process Execution Language is a language that is implementable for interaction specification along with Web services. The processes of BPCL will export and import informat

BUSINESS, WHAT THE DIFFERENT BETWEEN BUSINESS MANAGEMENT AND BUSINESS ADMIN...

WHAT THE DIFFERENT BETWEEN BUSINESS MANAGEMENT AND BUSINESS ADMINISTRATION?

#title., What kinds of problems can emerge if a firm doesn’t communicate wi...

What kinds of problems can emerge if a firm doesn’t communicate with environmentalists, the news media, and the local community? Why? Do you know of any firms that aren’t responsiv

Budget, Define master budget

Define master budget

Discuss any two ongoing management costs, a. Discuss any two ongoing manage...

a. Discuss any two ongoing management costs considered in financial analysis in BPO b. Explain any two pricing models to structure price of an outsourcing contract.

Differences between informative and persuasive presentations, QUESTION 1 ...

QUESTION 1 An effective team is one which achieves its tasks and satisfies its members. (a) Show, with examples, the characteristics of an effective team? (b) Describe ho

Fully operational computer system, Explain the reasons why a department of ...

Explain the reasons why a department of an organisation might continue to use manual records rather than a new, recently installed and fully operational computer system. Severa

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