Question
What general observations can you make about the company based on the profit and loss results? Note specific areas of concern and/or identify strengths. Does
What general observations can you make about the company based on the profit and loss results? Note specific areas of concern and/or identify strengths. Does the company need to borrow money at the end of the year to meet expenses? Explain why or why not? If the company does need to borrow money, how much would you recommend and from what source(s)? If the company does not need to borrow money, what other recommendations might you have based on your analysis of the results? Make sure to provide detailed explanations in which you carefully consider all aspects of the profit and loss spreadsheet (minimum 250-word response).
Submit your completed estimated P&L spreadsheet and minimum 250-word, double-spaced, APA-formatted response (include an additional title page) to the Unit 10 Assignment Dropbox. For additional help with the current APA format, consult the Unit 9 Reading area for the PG Writing Centers APA citation and reference guides.
Scenario A: Unit 10 Assignment Assumption
- Assume monthly gross sales are $280,000 October, $290,000 November, and $345,000 December.
- Assume Inventory purchases are $70,000 October, $75,000 November, and $95,000 December.
- Assume the owner gets a cash disbursement of $45,000 in October, $51,000 in November, and $52,000 in December.
- Assume wages and salaries are 48% of gross monthly sales.
- Assume rent is $9,500 a month.
- Assume utilities are 5% of gross monthly sales.
- Assume a tax prepayment of $16,000 in October.
- Assume bank interest on the note is $1,500/month.
Chosen Assumption: Insert A or B here | October | November | December |
Gross Sales | |||
Inventory Purchases (cost of goods sold) | |||
Net Sales (DO NOT ENTER ANY INFO.) | |||
Cash Disbursement to Owner | |||
Wages and Salaries | |||
Rental Expenses | |||
Utilities | |||
Tax Prepayment | |||
Interest on Bank Note | |||
Total Expenses (DO NOT ENTER ANY INFO.) | |||
Profit (DO NOT ENTER ANY INFO.) |
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