1. Brawn Demolition
Improving Profits

2. Never be frightened to take a profit. Better in your pocket then theirs.
Michael levy
Woopidoo! quotations. (n.d.). Inspirational Business quotes. Retrieved from:

3. At the end of the previous fiscal year, April 2008 the Brawn Company began the new fiscal year with a capital of $51,610 and the owner was able to invest $30,000 cash in to the company. During the fiscal year 2009 the Brawn Demolition Company earned $38,945 in Net Income after recording all adjusting entries. Upon recording withdrawals made by Brawn Demolition Company of $25,500 the company’s capital is a positive $95,055.

4. The company’s current profit margin is 27
The company’s current profit margin is 27.8% which is evidently higher than last year based on the reported capital of $51,610. Brawn Demolition Company is continuing to increase and grow their profits. Although, the company is doing well a major goal for any company is to continue growing profits and become a leader in the market industry.

5. Control Your Expenses
One of the areas that a company should show high focus on is controlling their own expenses. “The advantage of controlling expenses is that for every dollar you save by eliminating an expense, you gain an extra profit (Badmin, S., 2011, Six Ways to Improve Profitability).”

6. Zero-Based Budget System
Being aware of what goes out, of the cash flow by using a zero-based budgeting system allows the company to begin each year with a zero balance in several categories such as the supplies expense. Using this method will also allow the company to make a conscious decision on whether or not the expense is necessary. This could have a huge impact on the company’s overall net income.

7. Smart Future Decisions
Knowing year to year the company’s past or historical transactions may not always be relevant to future decisions. It is important to use caution when making decisions to improve profit by understanding what past transactions can confuse making a decision for future growth. “No decision will undo the past. Since the amounts in the company’s accounting records are history, you need to be careful when using them to make decisions (Improving Profits, n.d., Accounting Coach).”

8. A common area to look at would be replacing equipment and whether or not this could improve company profits. There are several factors that need to be reviewed to determine profitability by replacing equipment and whether or not it will increase or decrease operating expenses, owner salary, disposal of old equipment, the value of an employee or owners time. Replacing equipment with more recent models can improve efficiency and generate additional profits. This could also have an impact on changing future numbers with revenue earned by adding additional services that may not have been offered before due to equipment restrictions.

9. Controlling expenses and making smart decisions to “replace the old with the new” will increase the company’s net income by eliminating unnecessary expenses and adding additional services for increased revenue and operating efficiency.

10. References
Badmin, S. (2011). Six Ways to Improve Profitability. Retrieved from:
Improving Profits. (n.d.). Retrieved from