1 / 7

Do Now Activity: Answer the following questions:- What is Profit? What is Cost of Sales?

Do Now Activity: Answer the following questions:- What is Profit? What is Cost of Sales? What is an Expense? . Activity: These are the items in an Income Statement. Sadly they are not in order – Put them in correct Order. The Income Statement.

ondrea
Télécharger la présentation

Do Now Activity: Answer the following questions:- What is Profit? What is Cost of Sales?

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. Do Now Activity: Answer the following questions:- What is Profit? What is Cost of Sales? What is an Expense?

  2. Activity: These are the items in an Income Statement. Sadly they are not in order – Put them in correct Order

  3. The Income Statement Sales: Income generated by a company's sales operations. Cost of Sales: The costs directly related to the purchase or production of whatever the company sells Gross Profit: Revenue/Sales minus the cost of goods sold. Expenses: The indirect costs incurred by a business that result from generating revenue. They include parts, wages, utilities, etc Net Profit: Gross profit less expenses in an accounting period. Purpose: Shows the income and expenses (net profit) of the business for a period

  4. Lifesystems is a small company selling First Aid packs. • In 2020:- • It sold $100,000 worth of ice packs. • It cost them $30,000 to buy the packs. • It paid $20,000 in wages, $3,000 in rent and $5000 in interest on a mortgage. Calculate:- Gross Profit Net Profit

  5. Lifesystemsis a small company selling ice packs for sporting injuries. In 2020:- • It sold $100,000 worth of ice packs. It cost them $30,000 to buy the packs. • It paid $20,000 in wages, $3,000 in rent and $5000 in interest. Activity: Create a full Income Statement for Lifesystems.

  6. Answer

More Related