Unit 2: Business Resources P5 Is The Business Profitable? The closing capitals for both years are very similar and propose that not only is the business very profitable but it is also maintaining its financial position within the market. In 2011 the closing capital was £2,500,000 and for 2012 the closing capital was £2,425,000. This is interesting because as a business progresses you would think that the closing capital would increase not decrease although this is not too large a decrease when compared with the general current financial instability and the number of businesses which are struggling to stay afloat. The gross profit would also suggest that both years were profitable but with a decrease from £1,000,000 for 2011 to £740,000 for …show more content…
I think that Net profit is more important than Gross profit because although the business could have £740,000 (2012) in Gross Profit, the business may have very high expenses therefore the net profit figures offer a more realistic figure of the finances available. The Net profit shows the actual profit once all expenses are deducted from the Gross profit. The expenses could be higher than the Gross profits which once deducted would leave the business at a loss when they thought they were making a profit from the Gross Profit. In 2012 the expenses were £733,000. Once this was taken off the Gross Profit it left a Net profit of £7,000. If the expenses were even higher than the Net profit figure this would have been a negative balance causing problems for the business. What Is The Difference Between Current And Fixed Assets? The difference between Current and Fixed assets is that fixed assets are things the business intend to keep, they will not be selling them in order to turn them into money. Fixed assets are non-moveable in the business and lose value over time. Current assets are things the business owns and intend on selling (e.g. stock) or turning into cash for the business (or already have e.g. in the bank). Current assets are designed to be cash eventually and are much more liquid than fixed assets. What Is The Difference Between Current And Long-Term Liabilities? The difference between current and long-term liabilities is that current liabilities are
operating profit reached $396.7 million in FY2012, an increase of 47.6% over FY2011. Also, the net
a terminal concentrator can multiplex with _________of terminals on a _______port(s) on a large computer.
There is an general increase of sales when the income statement is provided. “The income statement reports the revenues and expenses for a specific time period.” (Weygandt, J. Kieso, D. Kimmel, P. 2008) The format of an income statement is listed with revenues first then expenses. Net loss is when the expenses exceed the revenue and net income is
Monster, the online jobs service, has launched an ambitious and quite literal new pan-European campaign introducing a formidable new character to reinvigorate the brand. The pan-European campaign is the first work by mcgarrybowen for Monster since being appointed to the business at the end of February this year, and literally brings Monster to life as a giant monster that looks like a less friendly rendition of the McDonald's Grimace, and is being posited by the brand as, essentially a “Big, mean, job-getting machine.” The campaign targets a new generation of Millennial job seekers, a generation brimming with ambition, but coming up against the harsh realities of the job market. The campaign aims to reassure Millennial job seekers that, with the power of Monster behind them, nothing can stand in the way of their dream jobs.
Typically, net profit is measured on a quarterly or annual basis. When compared with a company net profit during other periods, it can provide a useful measure for how profitable a company is over time and the overall performance of the company & management team.
I am on placement in an eye hospital and I carried out one to one communication with a patient, it was whiteness by my placement supervisor. I used argyles communication theory to help me to successfully achieve affective communication. This one to one took place on the 20th of November 2012.
According to Henry (2016), resource management consists of budgeting and allocating resources. Which also includes human, financial and material resources. Based on the data provided, during January and February, the variance was over budget. During March and April, the variance was under budget. To help keep the budget under, I would address the concerns of the operating budget during a staff meeting. According to Marquis and Huston (2017), Managers should do what they can to see that employees feel they have some control over events that happen, including policies. A staff meeting, will keep all the members of the unit aware and informed of the concerns as well as allow them opportunities to suggest strategies that could help with the issue.
The current assets are those which are readily convertible into cash and cash equivalents due to their highly liquid nature and also form part of working capital of the company’s operations. However, the long term assets in contrast are not liquid because since they have a useful life of more than a year and hence their full value cannot be easily realized within
Based on Next Annual Report and Account January (2011), the chief executive's review present the A New Normal of company overview, due to the changing consumer environment, Next PLC need to have New avenues of growth, and brand new way to control cost, also, it will be important that retailer have to generate the healthy cash flow with cautious management. Furthermore, enable to know how company efficiently use asset to generate revenue and whether there was improvement between 2010 and 2011, the activity ratios have to calculate out. The ROCE in 2010 and 2011 were 38.91%,41.79%, this number showed how profit generated by capital employed, and the growth figure of ROCE lead to level up efficiency asset used.((NEXT PLC, 2011 page43, 45) The figure for inventory turnover, receivable turnover, and payable turnover in 2010 and 2011 were 46.81 days, 54.98 days; 66.07days, 68.23 days; 83.36days,81.3days; respectively. (ibid) It is clearly show that the inventory and receivable turnover in 2010 was taken lesser day than 2011, in which means inventories took less day to sold out to costumer and the cash credit receive more faster than the 2011, besides, the payable turnover had longer period than 2011, it was also a good example to illustrate that there was more cash flow holding by company, and the overall image of these figure present that the resource had been
Renee Herde makes a valuable point in the fact that students need to feel safe in their learning environment so therefore it is necessary to promote and enforce a high level of confidentiality and respect to hear what one another has to say. Each learner should be encouraged to say what they feel is necessary and should be responded to accordingly, because if they have the need to voice their comment to a classroom full of other people it was obviously important for them to let it be heard. Someone to just disregard their thoughts is a lack of respect possibly making the learner less inclined to join in future discussions; this should not be tolerated.
Net income is total revenues minus total expenses incurred to generate those revenues all within the same reporting period. Net income is calculated by the accrual accounting methodology meaning that the expenses incurred to generate revenues are reported at the same time the related revenues are reported. Both revenue recognition and expenses paid may not coincide with actual cash transactions. Net cash from operating activities, on the other hand, is not determined by accrual but by
Fixed assets are assets that will be held or used over a period longer than one year. Companies typically have land, equipment, and buildings as their fixed assets. The account is usually called property, plant, and equipment or PP&E.
The result of all the reductions of expenses on the revenues, takes us to the Net Earnings. This account reflects $12,266, $683 less than in 2008, but $1,690 more than 2007.
Profit is a surplus in money after taking into account all costs incurred in buying and selling a product. Operating profit is the profit made after all direct and indirect costs have been paid. (Bized, 2010a) From NEXT’s company accounts, the operating profit has increased by £51.5m. This is a positive steady increase which has been achieved throughout the
* DOM improves the key matric of the total profit it earns per pound of its total sales. They earned 19.3 pence per pound spent by customers in FY2009 but in FY2010 they