1 / 9

Remember these….

Remember these…. Sales. Net profit. Overheads (animation). Cost of sales. Gross Profit. Profit. What does it mean? One sentence 2 things that affect how much you make?. What where the items on the board at the start?. Overheads Sales Cost of Sales Net Profit Gross Profit

yahto
Download Presentation

Remember these….

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Remember these…. Sales Net profit Overheads (animation) Cost of sales Gross Profit

  2. Profit What does it mean? One sentence 2 things that affect how much you make?

  3. What where the items on the board at the start? • Overheads • Sales • Cost of Sales • Net Profit • Gross Profit • But what do they all mean?

  4. The structure of a profit and loss account 1 Top part is concerned with gross profit, e.g. £ Sales 300,000 Cost of sales 100,000 Gross profit 200,000 Note: cost of sales is the same as ‘cost of purchases’. It is deducted from sales.

  5. The structure of a profit and loss accounts 2 Second part is concerned with net profit, i.e. gross profit minus expenses. £ Gross profit200,000 Expenses Salaries 55,000 Rent 10,000 Other 5,000 Total expenses70,000 Net profit 130,000

  6. Your turn! 90,000

  7. Profit and Loss Costs Revenue (Money Made) • Smoothies = 50p each Costs per smoothie • Yoghurt = 12p • Fruit = 10p • Orange = 5p • Electricity = 3p • Telephone = 2p • Labour = 10p Calculate a profit and loss account – if I make 50 REMEMBER Difference between cost of sale and overhead/expenses!

  8. Profit and Loss Forecasting Using the following financial information for Arfur Daley Plc. construct a P&L account using the appropriate format.

  9. Arfur Daley’s Car Showroom Arfur Daley setup a business selling second hand cars. He forecasts his figures for next year as follows: £ Sales 500,000 Cost of painting/servicing cars 20,000 Cost of buying cars 350,000 Rent of Showroom 9,000 Rates 4,800 Assistants wages 5,000 Other showroom expenses 7,000 Tax 34,000 Dividends 25,000

More Related