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

Outline briefly smart cards, QUESTION a) Explain the whole credit card ...

QUESTION a) Explain the whole credit card processing cycle, identifying the different steps and parties involved. b) (i) Outline the main differences between a credit card a

Resources of Business, I want to know what are the resources of Business??

I want to know what are the resources of Business??

Organisations strategic position - business model, Organisations strategic ...

Organisations strategic position - business model: 1. Briefly, what are the products and/or services, as well as its geographic scope, of your chosen organisation? 2. Using

What do you understand by the term entrepreneurship, Question 1: (a) Wh...

Question 1: (a) What do you understand by the term Entrepreneurship? Briefly describe three forms of entrepreneurship. (b) Describe four values that a company creates for it

Describe the omnipotent and symbolic view, According to the systems approac...

According to the systems approach, all organisations are open systems as they are being impacted by different components of the external business environment. In such a context, th

What are the advantages of budgets, What are the advantages of budgets? ...

What are the advantages of budgets? The advantages of budget are as given below: a. Policy plans and actions considered are all reflected within the budgetary control system

Sales territory management, Sales Territory Management: To be efficien...

Sales Territory Management: To be efficient and effective the outside sales staff requires to be well managed and focused in their daily activities. The way they direct their

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.

IPhones, what kind of legal or socioculture issues might Apple be facing r...

what kind of legal or socioculture issues might Apple be facing rolling out their new iphone?

Portfolio analysis, explain portfolio analysis in marketing with practical ...

explain portfolio analysis in marketing with practical life examples

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