...Riordan Manufacturing is an organizations that operating with incompatible accounting program. Each facility may operate on its own well, the financial data supplied to the corporate office comes in many different forms from hard copies to spreadsheets. This has led to countless man hours that being lost while data is input at one operation and then manually transferred to another system, when it arrives at its destination. Corporate Accounting must then assemble its financial statements and budgets based on data information. The system overhaul needed the ERP (Enterprise Recovery Program) system. It insures that the purchase new system for Riordan will have application source code rights to customize software to their growing needs. This wills improved Riordan Manufacturing flows of financial information throughout the corporation Riordan will again benefit substantially improve its Financial & Accounting systems with an implementation of the recommended ERP system, NetSuite®. NetSuite® ERP system contains a complete financial and accounting system, including general ledger, financial reports, accounts receivable and payables, and budgeting. This system will dramatically enhance the data flow between facilities and into the corporate office producing real-time financial information. An ERP system that will connect the Finance and Accounting information with all the other departments will only strengthen Riordan going forward. While the initial costs of bringing all facilities...
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...Profit and Loss Statement Paper 04/21/2014 BSA/310 Profit and Loss Statement Paper A profit and loss statement is a statement that shows a company’s revenue and expenses over a particular period of time. A profit and loss statement covers net sales, cost of goods sold, gross profit, and net operating income to calculate how much money a business made or lost (net income). It is important for any business to keep an accurate accounting of all transactions to ensure an accurate profit and loss statement. Kudler Fine Foods, for example, has their profit and loss statement from the year ending December 31st, 2003 made publically available. Breaking down this statement will allow us to see how this company performed in 2003. Net Sales Net sales are calculated by taking the total amount of revenue generated from sales and subtracting sales returns and allowances. Sales returns are the loss a company receives from items that were returned for one reason or another. Sales allowances represents money that is lost by offering these returned products at a discounted rate (open box). Kudler Fine Foods generated $10,804,000 in gross sales. They incurred a loss of $7,800 due to sales allowances and returns. This equates to Kudler Fine Foods having net sales of $10,796,200 for 2013. Cost of Goods Sold Cost of goods sold, or COGS, represents the cost of obtaining a product that is to be sold. This can be through a third party wholesaler or through a company’s manufacturing...
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...Profit and loss/ Balance sheet/ Ratios (P5+P7) In 2009 ‘The Lost in Space T-shirt Company’ has only made £81,225 compare to the previous year when they have made 148,000. This shows that their profit has dropped over £66,775 in a matter of only a year. Furthermore there is an also drop in Gross profit for £170,000 what means that company didn’t manage to sell as many goods as in 2008 when their profit was £920,000. Sales revenue have increased in 2009 from 2,250,000 in 2008 to 2,280,000. This however, didn’t have any positive impact on retained profit. With the increase in sales revenue there was also increase in the cos of production up to £200,000. Higher production cost had a negative impact on the gross profit which fell down to 750,000 in 2009. That’s £170,000 profits loss. To balance the loss in profit, company tried to cut down on operating expenses and they managed to save £36,500. However after deduction of gross profit and operating expenses ‘the Lost in Space T-shirt Company’ only had £216,500 in operating profit which is £133,500 less than in 2008. Balance sheet shows that in 2009 company owned £20,000 less than in 2008 in fixed assets. This might suggest that company was struggling financially and they decided to sell some machinery worth of £30,000. With the money they gained from the sale they purchased their land and building form £280,000 to £290,000. Besides companies assets seem to increase from £720,000 to £806,225. Company had more assets in cash and...
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...Impacts to the Profit and Loss Statement AB299-02 Associates Capstone in Management January 21, 2013 As we can see, Tim’s Coffee Shoppe is one of the more successful businesses in town; being located near the local university gives Tim a great customer base. Tim’s Coffee Shoppe seems to acquire most of its business from the college students along with the people who work in the area. Once we begin to take a look at Tim’s income statement, greatest expense is the supplies for the coffee shop. Since there are new businesses that are moving in and around town, it is safe to say that Tim’s business will probably pick up. If his business picks up then Tim’s income will increase. But there is a price to pay with the increase in his income; there will be an increase in his expenses. We can see that Tim’s highest expense is his supplies, so this also means he will have to put out more money to increase his supply of supplies. It seems the second highest expense was salaries. Being that Tim will be gaining more business, he’s going to need more manpower to help serve the customers that will be coming in. This means Tim will have to pay more employees and in turn, his salary expense will increase. As expected, taxes, rent, depreciation, leasing, insurance and interest follow. In the year 2008, Tim’s Coffee Shoppe earned $400,527 while his total expenses were $326,016. This leaves Tim with a net income of $74,511. So the question is asked, will Tim’s business grow and increase...
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...Unit 6: Impact to the Profit and Loss Statement Eugenio Fernandez Cruzado Kaplan University AB299-37WCBOL Impact to the Profit and Loss Statement Tim’s Coffee Shoppe has been very successful lately with the local businesses around the shop and the large university. Tim seems to get most of his business from college students and people working in the downtown area. In Tim’s income statement, it shows that his highest expense is supplies for the coffee shop. His second highest expense is salaries. Then next are taxes, rent, depreciation, lease, insurance and interest in that following order. Tim’s Coffee Shoppe earned $400,527 in 2008 and his total expense were $326,016, which leaves him with a net income of $74,511. So if there are local businesses moving in around Tim’s Coffee Shoppe, will his business increase and what does this mean for his expenses, income and so forth? Granted, Tim’s business will pick up greatly with new businesses moving into the area. Therefore, Tim will probably earn more income, yet this means more expenses. We learned that Tim’s highest expense is supplies. If Tim gains more business, this means he will need more supplies and in return, spend more money on supplies. The second highest expense was salaries. If Tim gains more business, he may need to hire more employees to keep up with his growing business. This means Tim will have to pay more employees and this means his salaries expense will increase as well. Tim’s business...
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...Explanation of the components of Profit and Loss and Balance Sheet Profit and Loss A profit and loss allows a business to work out whether they have made a profit or loss after taking away all the expenses from their sales revenue. Purpose and Use: The purpose of a profit and loss account if correct is to be able to show how much profit or loss a business has/ will make. It includes the sales, costs and profit over a set amount of time normally yearly. Its use is that it could help measure the performance of a business and with possible decision making in the long term on perhaps decisions like whether to take trade credit or not. Trading account and calculations of gross profit: This involves the trading account which is the beginning part of the calculation of gross profit. It has three parts which are as follows: 1. Sales turnover – this is the money that a business has coming in by providing a trade for e.g. providing a service in Denise's case. It is worked out by the following calculation quantity sold x selling price. 2. Cost of goods sold – this involves the costs that are directly connected to providing a certain trade for e.g. the cost of buying raw materials used to produce the goods/ service for e.g. with Denise her cameras etc. This is calculated in the following formula opening stock + purchases – closing stock. 3. Gross profit – this is the amount of money or surplus which is left once the cost of goods sold have been taken away from the sales...
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...Daniel Case BSA/310 Riordan Manufacturing Profit and Loss Statement Paul Higel October 22, 2012 Riordan Manufacturing Profit and Loss Statement This is a description of Riordan Manufacturing’s (Riordan) profit and loss statements, known as an income statement. Raiborn (2010) stated, “An income statement may also be referred to as a “statement of earnings” or “statement of operations”.” (p. 259). There are many way a company can write an income statement. Income statement shows the net profit of a Riordan in the fiscal year. The Net profit is the difference of income and expenses also known as profits and losses. Income is the total gross margin, whereas expenses are the sum of the total operation expenses, and the non-operation Expenses (Khan, 2009). Income Statement The gross margin is the first portion of the income statement. The first line is the Sales line. The Sales is the total amount of product sold. Riordan sales a number of plastic products like plastic bottles, plastic fans, and blood stents. In 2010, Riordan’s total sales were 56.5 million dollars. Second line is the Direct Cost of Goods Sold (DCGS). DCGS is the manufacturing cost like raw plastics and workforce salary. In 2010, Riordan’s total DCGS were 43.9 million dollars. The gross margin is the difference of the Sales and the DCGS. Riordan total gross margin is 15 million dollars. This amount is before taxes, operation expenses, and executive pay. Operational expenses...
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...In this assignment I will be looking at the contents of the profit and loss account and I will be explaining the meanings and reasons for those contents. In addition I will be doing the same for the balance sheet. By law companies are expected to produce financial statements each year. These statements appear in Company Reports. There are two main financial statements: The profit and loss account: The profit and loss account is also known as a statement of profit and loss, an income statement or an income and expense statement. The profit and loss summarises on how much the business revenues are, their costs and expenses that has been sustained during a specific period of time which could usually be a quarter of year or a year. These summaries show how capable a business is to generate profits and handle costs. Sales are important in a business like monsoon because it shows you how well the business is doing. As monsoon is a business that sells items such as clothes, shoes, jewellery etc. The amount that they sell is important so that they can sell stock and receive some money that can be spread out for costs and expenditures it also enables the business know if they are doing better than other competitors looking at their volume of sales. Sales are also a big part in the profit and loss account statement and also help the balance sheet numbers as well. Cost Of sales is the accumulated total of all costs used to create a product or service, which has been sold. The cost of...
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...PROFIT & LOSS CALCULATION COURSE OBJECTIVE: What is Aptitude ? Aptitude literally means a natural talent. It is something that comes with us by our birth. But it is to be explored and developed within by us and that can be achieved by understanding and practicing the concepts of aptitude. The candidates with good aptitude skills are considered better than others because they are fast at their mind and good at problem solving skills. Thus aptitude has become the most important soft skill these days. IMPORTANT FACTS: What is profit and loss? What is Profit? When a person does a business transaction and gets more than what he had invested, then he is said to have profit. The profit he gets will be equal to the additional money he gets other than his investment. So profit can be understood as the extra money one gets other than what he had invested. Eg: A person bought an article for Rs. 100 and sold it for Rs. 120. Then he got Rs. 20 extra and so his profit is Rs. 20. What is Loss? When a person gets an amount less than what he had invested, then he is said to have a loss. The loss will be equal to the deficit he got than the investment. Eg: A person bought an article at Rs. 100 and sold it for Rs. 90. Then he got a deficit of Rs. 10 and so his loss is Rs. 10. Cost Price (CP): The money that the trader puts in his business is called Cost Price. The price at which the articles are bought is called Cost Price. In other words, Cost Price is nothing but the investment in the business...
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...Construct a delivery date profit or loss graph for a long position in a forward contract with a delivery price of$75. Analyze the profit or loss for values of the underlying asset ranging from $55 to $95. a. Which of these graphs shows the correct profit/loss line for the long forward contract on the delivery date, T? QA. GraphD QB. GraphA QC. GraphB QD. GraphC Graph A GraphB j I j I $2 $3 $2 $1 u 1 1$1 .... $0 0.., $85 $95 .... $ 0.., .., .., j -$1 j -$1 -$2 -$3 Price ofUnderlying Asset (on date 1) Price of Underlying Asset (on date 1) GraphC GraphD $2 J $1 j $1 1 $0 1 .... $95 $105 $105 "' .., "' .., 0.., "' -$1 -$1 J: J: -$2 -$2 Price ofUnderlying Asset (on date 1) Price of Underlying Asset (on date 1) When the delivery price of the long forward contract is $75, and the actual price at the time of delivery is $55, there is a [profit/loss] of sO. (Use a negative sign if there is a loss and round to the nearest dollar.) When the delivery price of the long forward contract is $75, and the actual price at the time of delivery is $70, there is a [profit/loss] of $0. (Use a negative sign if there is a loss and round to the nearest dollar.) 1. sO. sO. (cont.) When the delivery price of the long fmward contract is $75, and the actual price at the time of delivery is $75, there is a [profit/loss] of (Use a negative sign if there is a loss and round to the nearest...
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...contract. American Standard sells forward £1 million. American Standard is: a) Hedging. b) Speculating. c) Locking in an arbitrage profit. Answer: Part a) Hedging is the correct answer. ------------------------------------------------- 2) American Standard Co. has a 90 day £62,500 receivable. American Standard’s bank, Bank of America, suggests a put option contract that matures in 90 days. American Standard purchases one put option contract, where one contract corresponds to a quantity of £62,500. American Standard is: a) Hedging. b) Speculating. c) Locking in an arbitrage profit. Answer: Part a) Hedging is the correct answer. Because in this case, the American Standard Co is sure about the money to be received and wants to hedge against the exchange rate risk which is hedging. ------------------------------------------------- 3) American Standard Co. has a 90 day £62,500 receivable. American Standard’s bank, Bank of America, suggests a call option contract that matures in 90 days. American Standard purchases one call option contract, where one contract corresponds to a quantity of £62,500. American Standard is: a) Hedging. b) Speculating. c) Locking in an arbitrage profit. Answer: Part a) Hedging is the correct answer and not locking in an arbitrage profit, because in this case, the American Standard Co is sure about the money to be received and wants to hedge against the exchange rate risk which is hedging...
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...Income Tax Losses Toolkit 2012-13 Self Assessment Tax Returns Published May 2013 Index Introduction .................................................................................................................................. 3 Areas of risk within Income Tax losses ........................................................................................ 3 Using links within this document .................................................................................................. 6 Checklist Income Tax losses........................................................................................................ 7 Explanation and mitigation of risks............................................................................................... 8 2012 -13 2 Introduction Tax agents and advisers play an important role in helping their clients to get their tax returns correct. This toolkit is aimed at helping and supporting tax agents and advisers by providing guidance on the errors we find commonly occur in relation to Income Tax Losses. It may also be helpful to anyone who is completing an Income Tax Self Assessment tax return. This version of the Toolkit was published in May 2013. The risks in this toolkit have been reviewed and updated where necessary for 2012-13.This toolkit is applicable for financial years commencing 6 April 2012 for Income Tax Self Assessment tax returns. Its use is entirely voluntary. The content of this toolkit is based on our view of how tax...
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...REM PROGRAM TO CALCULATE PROFIT CLS INPUT “ENTER COST PRICE”; CP INPUT “ENTER SELLING PRICE”; SP P = SP - CP PRINT “PROFIT AMOUNT=”; P END USING SUB PROCEDURE DECLARE SUB PROFIT (CP, SP) CLS INPUT “ENTER COST PRICE”; CP INPUT “ENTER SELLING PRICE”; SP CALL PROFIT(CP, SP) END SUB PROFIT(CP, SP) P = SP - CP PRINT “PROFIT AMOUNT=”; P END SUB USING FUNCTION PROCEDURE DECLARE FUNCTION PROFIT (CP, SP) CLS INPUT “ENTER COST PRICE”; CP INPUT “ENTER SELLING PRICE”; SP PRINT “PROFIT AMOUNT=”; PROFIT(CP, SP) END FUNCTION PROFIT(CP, SP) P = SP – CP PROFIT = P END FUNCTION 49. calculate loss REM PROGRAM TO CALCULATE LOSS CLS INPUT “ENTER COST PRICE”; CP INPUT “ENTER SELLING PRICE”; SP L = CP - SP PRINT “LOSS AMOUNT=”; L END USING SUB PROCEDURE DECLARE SUB LOSS (CP, SP) CLS INPUT “ENTER COST PRICE”; CP INPUT “ENTER SELLING PRICE”; SP CALL LOSS(CP, SP) END SUB LOSS (CP, SP) L = CP - SP PRINT “LOSS AMOUNT=”; L END SUB USING FUNCTION PROCEDURE DECLARE FUNCTION LOSS (CP, SP) CLS INPUT “ENTER COST PRICE”; CP INPUT “ENTER SELLING PRICE”; SP PRINT “LOSS AMOUNT=”; LOSS(CP, SP) END FUNCTION LOSS (CP, SP) L = CP – SP LOSS = P END FUNCTION 50. calculate profit percentage REM PROGRAM TO CALCULATE PROFIT PERCENTAGE CLS INPUT “ENTER COST PRICE”; CP INPUT “ENTER SELLING PRICE”; SP PP = ((SP – CP) / CP) * 100 PRINT “PROFIT PERCENTAGE=”; PP END USING SUB PROCEDURE DECLARE SUB PROFITP (CP, SP) CLS INPUT...
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...INCOME (PROFIT & LOSS) STATEMENT What is a profit and loss statement? The profit and loss statement is a summary of the financial performance of a business over time (monthly, quarterly or annually is most common). It reflects the past performance of the business and is the report most often used by small business owners to track how their business is performing. As the name indicates the profit and loss statement (also known as a statement of financial performance or an income statement) measures the profit or loss of a business over a specified period. A profit and loss statement summarises the income for a period and subtracts the expenses incurred for the same period to calculate the profit or loss for the business. Why prepare a profit and loss statement? Producing regular profit and loss statements (at least quarterly or monthly) will enable you to: answer the question, "How much money am I making, if any?" compare your projected performance with actual performance; compare your performance against industry benchmarks; use past performance trends to form reasonable forecasts for the future; show your business growth and financial health over time; detect any problems regarding sales, margins and expenses within a reasonable time so adjustments may be made to recoup losses or decrease expenses; provide proof of income if you need a loan or mortgage; and calculate your income and expenses when completing and submitting your tax return. Components...
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...Report on Trading and Profit & Loss account of Domestic Dog Homes for year ended December 31 2011. Report prepared by Nancy Whittle Dated 09/01/2013 1.0 Introduction This report will be explaining the Trading and Profit and Loss account on what has been lost and what has been made in Domestic Dog Home’s company within the last 1 year. 2.0 Findings From the information on the profit and loss and trading account, I found information about the finances from the previous financial year. Trading account The Trading Account is part of the Profit and Loss Account which shows sales turnover, costs of sales and changes in stocks. 2.1 Sales The Sales in the trading account show information of what the company has sold in the financial year, in this case, it would show information about the sales of what Domestic Dogs Home have sold including products such as dog tents, incontinence beds for mature dogs which don’t leak and can be washed every day for 1 year. The Sales for Domestic Dog Home’s was £250,000 at the end of 2011. 2.2 Sales returns A Sales Return is products that are sent back by a customer to the seller, usually for one of the following reasons: • Excess quantity shipped • Excess quantity ordered • Defective goods • Goods shipped too late • Wrong items shipped In this case, it would be that a customer who brings a product back to the Domestic Dog’s Home and the people who are in – charge of the finance department would record this return as a debit to...
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