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 ebay activities, Question: A firm's connected activities are d...

Question: A firm's connected activities are defined as those activities that the firm must perform in order to deliver its customer value. A firm's strategy is said to be sound

Discuss how can workplace violence be prevented, Question 1: (a) Explai...

Question 1: (a) Explain what is a chemical hazard and under what circumstances do chemical substances become hazardous. (b) How do chemical hazards affect the body and what

GBED1101, Some people argue that the matrix structure should be adopted onl...

Some people argue that the matrix structure should be adopted only as a last resort because the dual chains of command can create more problems than they solve. Do you agree or dis

Global expansion of heineken, Heineken NV is one of the world's largest bee...

Heineken NV is one of the world's largest beer producer, selling more beer outside the United States than its closest competitors, Anheuser-Busch and SABMiller. In 2002, only 14% o

Hygiene factors or motivators, QUESTION 1 Several organizations in Maur...

QUESTION 1 Several organizations in Mauritius have made their name in the industrial sector and still references for future enterprises .Their success is a result of good manag

Discuss the essential components of a business plan, Adam's Big Leap O...

Adam's Big Leap Over the past five years or so, Adam has been working as Supervisor for King Burger and considers himself very fortunate to have landed in such a perfect job r

Different types of change that an organization may face, QUESTION (a) O...

QUESTION (a) Organisations are systems that exist in the context of an external environment, an interdependent relationship, interact with it in order to survive and grow. Any

Material management, what are the functions of material managemnet

what are the functions of material managemnet

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