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Use with Business Accounting and Finance

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Presentation on theme: "Use with Business Accounting and Finance"— Presentation transcript:

1 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

2 Use with Business Accounting and Finance
TERMINOLOGY Revenue Expenses Profit Loss Use with Business Accounting and Finance Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

3 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

4 Use with Business Accounting and Finance
Example: Mary One type of cooker sold for £195 each Cost of one cooker = £135 Use with Business Accounting and Finance Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

5 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

6 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

7 Use with Business Accounting and Finance
Example: Mary (continued) At 1 June Mary has 30 cookers in stock During June she sells 76 cookers 75 cookers are delivered to her in June How many are in stock at 30 June? Use with Business Accounting and Finance Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

8 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

9 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

10 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

11 Use with Business Accounting and Finance
Example: Mary (continued) At 1 November 20X1 opening stock = £4725 At 31 October 20X2 closing stock = £6480 Purchases in the year = £ Sales: 986 cookers at £195 141 cookers at £175 Use with Business Accounting and Finance Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

12 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

13 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

14 Use with Business Accounting and Finance
Typical business expenses Cost of premises Selling costs and costs of distributing goods Administration costs Finance costs Use with Business Accounting and Finance Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

15 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

16 Use with Business Accounting and Finance
Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

17 Use with Business Accounting and Finance
Gross profit margin for 20X2: £ x 100 = 29.9% Gross profit margin for 20X1 = 29.0% So: gross profit margin has improved Use with Business Accounting and Finance Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

18 Use with Business Accounting and Finance
Net profit margin for 20X2: £ x 100 = 17.5% Net profit margin for 20X1 = 16.4% So: net profit margin has improved Use with Business Accounting and Finance Second Edition by Catherine Gowthorpe ISBN © 2005 Thomson Learning

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