HUECLectPPT2-3aa-1

HUECLectPPT2-3aa-1 - Part II Profit and Loss Statements...

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Part II Profit and Loss Statements
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Part II. Profit and Loss Statements Profit and loss statements ( income statement) summarizes the basic merchandising factors that affect profit results The basic format of a profit and loss statement is as follows: Net sales - Cost of goods sold = Gross margin - Operating expenses = Net profit or loss ©2009 Fairchild Books, A Division of Condé Nast Publications. 2
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Part II. Profit and Loss Statements A. SKELETAL PROFIT AND LOSS STATEMENTS Skeletal profit and loss statements are a quick method to determine any given department’s profit or loss. It contains the five major components of a profit and loss statement and is expressed in both dollars and percentage. Example: Net Sales = $300,000 100% - Cost of goods sold = -180,000 60% = Gross margin = $120,000 40% - Operating Expenses = - 105,000 35% = Net Profit = 15,000 5% ©2009 Fairchild Books, A Division of Condé Nast Publications. 3
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Part II. Profit and Loss Statements Concept: Cost of goods sold % = Cost of goods sold (in dollars)
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This note was uploaded on 02/14/2012 for the course HUEC 3043 taught by Professor Freeman during the Fall '10 term at LSU.

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HUECLectPPT2-3aa-1 - Part II Profit and Loss Statements...

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