In this I will be explaining the profit and loss of the Domestic Dog Homes along with the explanation of the balance sheet of Domestic Dog Homes.
The profit and loss account is a type of business information which companies or Domestic Dog Homes (DDH) can use to see the financial performance of their company over a certain time period.
The profit and loss account shows the sales, cost of sales, gross profit and net profit from the DDH trading accounts it shows that DDH made of gross profit of £33,000 without taking into other accounts such as costs of sales, stock etc… the profit and loss account also shows that DDH made a net profit of £11,600.
DDH make their sales by selling their stock/ their products, DDH specialise in selling
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I think this is not a healthy profit to have as they will still have to use that money to buy stock and pay for any outstanding bills and other immediate costs such as building maintenance, which will leave them with even less money. The costs DDH would have to think about and pay would be more fixed cost such as building maintenance i.e. lighting, water, gas etc… they would also have to think about the fixed cost of, tills, computers, vans/ vehicles and the building itself along with many more costs.
Net profit is the amount by which income from sales is larger than all expenditure. The net profit is calculated by taking away the total expenses from the gross profit. This is why net profit is always lower then gross profit as the expenses added up are taken away from the gross profit leaving them with less. For DDH the total expenses were £21,400 which taken away from the gross profit of £33,000 left them with the net profit of £11,600. This I would say, is again not a healthy profit as it is not that much money in terms of how much money they put in, although this is excluding expenses it is still not that much money as DDH may want to introduce a new product or invest into something new. However overall they are ,making a profit as all the costs and expenses were taken in and they still have £11,000 profit.
A balance sheet shows the value of a business on a particular date. A balance sheet shows what the business owns and owes, its assets
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| The customers would be influenced because if the company are financially struggling the customers are there only hope to stay profiting. If the company was to go bust it means customers will no longer be able to shop there. The customers would be an external stakeholder, they can get information by advertisements and even check their annual report on the businesses website.
There are several different types of business ownership which are most commonly used in business’ and company’s today, these include; Co-operative which is a business owned by its employees, Partnership which is a business owned by between 2 and 20 people, Private limited which is a business owner by a small groups of people who have shares and a Public limited business is owned by private individuals by shares bought and sold on the stock market. A charity is a business with the purpose to help the public, the government is a business owned by the government and lastly a sole trader which is a business owned by only one person.
When you develop messages, what factors should you consider as you choose your words? Which considerations do you think are most important? Why?
Profit is a surplus in money after taking into account all costs incurred in buying and selling a product. Operating profit is the profit made after all direct and indirect costs have been paid. (Bized, 2010a) From NEXT’s company accounts, the operating profit has increased by £51.5m. This is a positive steady increase which has been achieved throughout the
There are many different paths people can take throughout their lives. In the novel, Fifth Business by Robertson Davies, the main character, Dunstan Ramsey, takes the path of the Canadian hero. There are many different steps to be taken by the hero and Dunstan Ramsey follows his path by completing each step.
In this task I’m going to analyse the figures on cash flow that I created in P3 and justify why you think the business might have problems also provide range of solutions.
Given the net sales in 2011 is still higher than 2010, we can assume the problem is most likely with its operating cost management. On the other hand, HH’s assets turnover rate dropping 0.30 from 2010 suggests an inefficiency of generating more sales with its increased assets in 2011.
A profit and loss account is intended to show a business its income and expenditures and calculate the company’s net profit or loss based upon the difference between those figures. It is extremely useful in determining past performance and to try and predict future results. It enables a business to see what changes could make to improve on its profit. It also give enough information to help a business to set targets.
Actual sales = 1686 (in million €) and Break even sales = 1126.61(in million €)
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know what it is exactly, in order to assess the extent to which the accounting profit reflects
Account groups : assets, liabilities, owners equity, revenue and expenses makes up all of the statement of financial position and statement of financial performance. They show us the budgets and also the profit/ loss.
It is important for every business to carry out financial statement analysis in order to gain an understanding of their current financial status. There are two main types of financial statements that businesses commonly use when it comes to financial analysis. These are known as the Profit and Loss Account and the Statement of Financial Position. A profit and loss account consists of a list of expenses incurred by the company, against their revenues over a certain period of time. It shows whether the organisation