Gross and Net profit Gross profit A company’s revenue‚ minus the business’ costs of goods For example: If I sold 5000 cheese sandwiches for £1 each my total revenue would be 50 x £1 = £5000 It costs 25p per sandwich to purchase bread‚ butter and cheese. My gross profit = Revenue – Costs of sales (25p x 5000= £1250.00) = £3750.00 Net profit The business’ gross profit minus expenses For example: My gross profit from my sandwiches is £3750.00 to calculate my Net profit I need to minus
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Net and Gross Method of Recording Purchases Purchase Discounts It is a contra-expense account which is an offer from the supplier to the purchaser‚ to reduce the selling price if the payment is made within a certain period of time. It is subtracted from the purchases on the income statement. Sellers frequently call them sales discounts. Methods of Recording In accounting‚ gross method and net method are used to record these kinds of transactions. Net Recording Method Under the net method‚ purchase
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between gross and net profit If a business wants to succeed they have to make profit. Because if they do not make any sort of profit then their business will not succeed. If Hannah wants to succeed in her business then she must make profit in order to survive in the outside market and if she doesn’t make that much profit then her business is in trouble she can go in debt or even lose his business as it won’t exist anymore. So Hannah needs to know about the two main types of profit which is gross profit
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Company’s sales‚ half of which are for cash‚ over the past three months were: August September October $70‚000 $120‚000 $80‚000 a. Estimate Harlin’s cash receipts in October if the company’s collection period is 30 days. b. Estimate Harlin’s cash receipts in October if the company’s collection period is 45 days. c. What would be the October balance of Accounts Receivable for Harlin Fencing if the company’s collection period is 30 days? 45 days? 5. Suppose
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Week 2 Solutions – Individual Assignments EXERCISE 8-5 (15–20 minutes) (a) Inventory December 31‚ 2007 (unadjusted) $234‚890 Transaction 2 13‚420 Transaction 3 -0- Transaction 4 -0- Transaction 5 8‚540 Transaction 6 (10‚438) Transaction 7 (10‚520) Transaction 8 1‚500 Inventory December 31‚ 2007 (adjusted) $237‚392 (b) Transaction 3 Sales 12‚800 Accounts Receivable 12‚800 (To reverse sale entry in 2007) Transaction 4 Purchases (Inventory)
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Penshoppe Penshoppe Clothing provides a variety of styles to choose from and constantly update its collection. Started in 1986‚ today Penshoppe is recognized as one of the market leaders in the Philippine’s in fashion‚ accessorries and personal care product industry. Penshoppe was launched in 1986 by young Chief Executive Officer Bernie Liu and a few friends in Cebu City‚ Philippines‚ who were privy to the clothing needs of young people. T-shirts basically composed 80% of students’ clothing repertoire
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The net domestic product (NDP) equals the gross domestic product (GDP) minus depreciation on a country’s capital goods. Net domestic product accounts for capital that has been consumed over the year in the form of housing‚ vehicle‚ or machinery deterioration. The depreciation accounted for is often referred to as "capital consumption allowance" and represents the amount of capital that would be needed to replace those depreciated assets. If the country is not able to replace the capital stock lost
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& water or alcohol based hand rubs‚ hands that have been in contact with human or animal feces‚ bodily fluids like nasal excretions‚ and contaminated foods or water can transport bacteria‚ viruses and parasites to humans and causes infections. 5 gross hand hygiene facts are:
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the relationship between radio airplay and record sales? Beginning in the 1950’s‚ radio stations play began to affect record sales. Radio stations began to play a variety of songs‚ including artists such as Elvis Presley and Bill Haley. When people heard songs they enjoyed on the radio‚ they tuned in to hope to hear the song again at some point. This drive to listen to these tunes help contribute to the record store boom. People would have to buy records to control when they could listen to these
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Read the Reviews “Viable Vision: Transforming Total Sales into Net Profits is a book for anyone responsible for increasing the profitability of their business. Gerry Kendall combines the theory with real life examples of its power to transform complex problems into clear‚ common sense executables that will increase the profitability of your business. If you think the complexities restrict the future success of your business‚ then you’re about to be enlightened.” —Patrick J. Bennett‚ Executive Vice
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