- Construct a final profit and loss statement given the following figures. Give the major factors as both dollar amounts and percentages. (Spreadsheet)
Opening inventory $ 34,200
Gross Sales 178,000
Advertising expense 7,000
Miscellaneous expense 11,000
Purchases, at cost 70,000
Closing inventory 48,000
Customer returns 15,800
Salaries 16,000
Transportation 4,000
Rent 19,000
Cash discounts 3%
- At House of Crab, beginning inventory was $7340, purchases for the month totaled $32,500, food in production was $650 and closing inventory was $6230. What was the cost of food sold? (Spreadsheet)
- In profit and loss statements, discuss the difference importance of dollar amounts vs percentages in analyzing performance. (Absolute vs. Relative terms)
- Estimated net sales for next year are $100,000, estimated cost of goods sold is $52,000, estimated operating expenses are $43,000. The buyer’s goal is a net profit of 5%. Complete an estimated skeletal profit and loss statement to determine the percentage of gross margin needed to achieve the desired profit. (Spreadsheet)
- Compare fixed and variable expenses, direct and indirect expenses, and controllable and non-controllable expenses. Give an example of each.
- Store A had net sales of $500,000, Gross Margin of 48%, and expenses of $230,000. Store B had a gross margin of 48%, and gross margin of $300,000 as a dollar amount, with $250,000 in expenses. Calculate skeletal profit or loss statements for both stores. Which store is more profitable? Why? (Spreadsheet)