TMA 03 TMA 3 1a. Profit and Loss account 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. We can learn more from the statement. As it shows the expenses so we can see clearly see where the largest expenses are, this could then be used to identify the immediate areas to focus on when trying to save on expenses. Word count 120 1B) The Purpose of a Profit …show more content…
It also helps in understanding the value of the business assets it owns and this can used to help you and other interested parties such as investors, creditors or shareholders to assess the worth of your business at a given moment. Word count 123 B. The Purpose of a balance sheet After reviewing the Balance sheet I have a concern regarding the Current and short term liabilities. Creditors/ trade payable is payment yet to be made for goods already received, if this continues to rise then it will effect the business profit and less stock will have to be ordered so repayments can be made. Bank overdrafts also continued to rise and in the long-term the business will be paying greater interest, which will again eat into the profit. Both increased quite a great deal from the last year-end. If this continues then the business will get into bad debts and owe too much that it will end up having to sale its assets to survive. Finally I can see that due to the above issues and other issues the net current assets/ working capital has decreased so therefore the business is less value then it was a year ago. If the business is worth £1 million now, this could soon decrease within another year. Word count 164 Q3. A Cash flow A Cash flow Statement shows both money coming into the business
Resources are selected as part of my formative observations and planning system and reflect the requirements of the EYFS curriculum (Early Education/DfE,2012). When observing children’s play, it allows me to identify the child’s interests, how they learn and what is required to develop their learning further. As a practitioner I can then provide varied opportunities within my planning to support development.(KS1)
Our company has a moral obligation to keep our customers safe. The code of ethics within our company is to be honest and provide protection to the children who play with our products. The overall cost to our company is how big of a risk are we willing to take. Our company needs to decide if business growth and profit is more important than the risk we would be taking in delivering those toys to children.
A profit and loss account is supposed to show a businesses’ income and expenditures and calculate the company’s net profit or loss based on the difference between those numbers. It is really useful in determining past performance and to try to predict future
The formula of the simplest possible compound containing only C and I atoms is CI4.
Scott and Jean’s Icebreaker activities serve several different purposes, the first of which being to encourage the group to come together as a whole and get to know one another. The initial activity did a fabulous job of encouraging the youngsters to introduce themselves to their peers in a fun and non intimidating way. It ‘broke the ice’ (LGBT Youth Scotland clips 2-6). If the introductions had been done with a greater amount
Brain Bigelow, John La Gaipa and William Corsaro have both made important contributions into understanding how children interpret “friendship”. Bigelow and La Gaipa carried out one of the first studies from what was a very under researched area. Bill Corsaro, a key figure in childhood studies, was particularly successful in gaining access into young children's worlds which has helped shape a further picture of this somewhat intriguing definition. Brace and Byford (2012)
a.) The income statement, also called the profit & loss account (P & L), is used to illustrate a company’s revenues and expenses over a particular period of time. It shows the net profit and/or loss for the given period (the difference between the business’ total income and its total costs). It also allows shareholders to see the performance of the business and if it has made an acceptable profit.
Jane thinks she will be taking ten months’ maternity leave after the birth of their child. Her employer’s maternity package is full pay for the first six months, and then on the statutory maternity pay, worth about £94 net per week, for the further four months. They looked into Adan taking some paternity leave but have decided against it, and
Assessment 3 Case Study – BSBMGT502B This is Assessment 3 for this Unit In this Webinar we will cover: The situation that happened leading up to the dismissal of Sam The unfair dismissal claim Discussion on the judgement What could have been done to avoid the situation
From the TGF discussions I have seen a variety of ideas from the group which broadened my horizons greatly on how
Being a partner is "a strong motivating factor," "You're not just an employee; you are an owner of the business. That makes you feel differently about everything."(Tom Miller department store director at JMP)
The net income of an organization is calculated by subtracting total expenses from the revenue. The net income is generally referred to as the profit of the organization. However, the net income is used to determine how well an organization performed financially within a period of time. The net income is a better estimate of profitability than cash flow. The cash flow shows whether a business can sustain itself. The way an organization pays their bills can greatly impact the cash flow. The cash flow statement is useful to investors because the cash flow statement details where the cash is coming from, whether from loans, products or services, and investments (Wilkinson, 2014).
In summary, the Profit & Loss report shows revenues earned (increase in owner equity), expenses incurred (decrease in owner equity), and the resulting Net Income or Net Loss in owner equity from the operation of the business during one specific period of time. It is one of the two main financial statements presented to investors and creditors outside the business.
The forecasted profit and loss statement will allow Columbia Memorial Hospital to predict their upcoming financial performance over an accounting period. One of the best predictors of the future can come from healthcare managers analyzing data, which in turn gives them the information needed to identify whether the organization can make a profit for the given period (57).
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