Net profit

POINT &MARGINAL COST STATEMENT • BREAK EVEN POINT (B.E.P.) The primary saying of each business and industry firm is maximization of profit since benefit is taken to be best measure of its prosperity benefit ought to be legitimately arranged. B.E.P. is that particular level of action which comes when volume of offers income meets downright cost. In this manner, the Break Point Analysis builds up the relationship among the expense of generation, volume of creation and the benefit. The B.E.P. might along these lines be taken as the one demonstrating the base level of generation and deals which the firm needs to attempt keeping in mind the end goal to be monetarily. BREAK EVEN ANALYSIS Particulars Amount Amount Total Sales (2,850*300) Less: Variable Cost Raw Material Wages & Salary Other Expenditure Contribution Less: Fixed Cost Depreciation on fixed assets@ 10% Interest on own capital@ 10% Interest on govt. loan@ 10% Interest on Bank loan@ 12% Profit before tax Tax as per slab system On 1st 1,10,000 nil On 110001-150000 @ 10% 4000 on Balance 102950 @ 20% 20590 Net Profit After Tax 186000 210000 63500 46,300 42,250 18,000 36,000 8,55,000 4,59,500 3,95,550 1,42,550 2,52,950 24,950 2,28,360 RATIO…

2) Net Profit Margin The net profit margin is calculated as Net Profit ÷Revenue (*100) and it tells us the proportion of profits retained by the company after the deduction of all operating expenses, cost of goods/services, tax and interest charges. 2015 The NPM of AT&T has shown a fluctuating trend. In 2015, AT&T’s selling, general and admin costs fell by 17% due to workforce reductions and the sale of AT&T’s Connecticut operations.51(AT&T, 2015) However, because of the increasing…

FINANCIAL RATIO ANALYSIS Operating Profitability Ratios Gross Profit Margin Gross profit margin is used to compare a company with its competitors. A higher gross profit margin indicates that a company can make a good profit provided it keeps its overhead costs under control whereas a lower gross profit margin indicates that the company is unable to control its production costs. Ideal gross profit margin depends on the industry. From the above graph, the gross profit margin has shown a…

Revenue is the profits a company receive from sale of goods or services before any cost or expenses are subtracted; it is known as the top line on a company (Investopedia, 2016). General Electric recognizes revenue when all sales are final upon delivering or sales agreement are in place. Most of the GE multiple components are in the same agreement. GE total revenue as of December 31, 2012 was $ 146,684,000, as of December 31, 2013 was $146,045,000 and as December 31, 2014 was $148,589,000 (Yahoo…

TUI UNIVERSITY Mathew Shannon SLP 1 Case Assignment ACC 403 –Principles of Accounting Dr. Craig Mayberry December 2015 Session International Financial Management The Smith Company earned the net profit of $349,150, resulting into the net profit margin of $86,850 /$436,000 = 19.91 %. Net Profit margin position clear out how much net profit is earned by the company with the given amount of sales which is the present case is 19.91%. Current Ratio is the ratio between current assets and…

products such as office and school supplies. The difference between these two companies may not be very noticeable when looking at them through a broad lens. However, after comparing the financial statements of these two companies, I found that the profitability, liquidity, and solvency of each is what distinguishes Staples from Office Depot. When comparing the profitability of these two companies at the end of the fiscal year, I discovered that Staples has a gross profit percentage of 26.17…

The availability and unstable price of Arabica coffee beans is a serious threat to Starbucks financial performance. Additionally, any supply interruption due to bad harvest or weather conditions could increase cost factors for Starbucks, while an economic crisis decreases consumers spending habits. All these factors mentioned above greatly affect Starbucks profit. The coffee industry is a competitive market and the increase pressure from competitors like Dunkin Doughnuts and McDonalds is a…

around 15% growth per year which seems encouraging until you look at several other factors. All of this should be backed up by looking at Net Income, however that’s where the findings start to look grim. The company lost 34% of earnings between 1999 and 2000, but manage to come out of that loss by 2001. However, even without significant loss here, the Net Income does not equally represent the strength in the company’s financial growth the way sales do. The overall production costs have…

Throughout the chapter, Alex questions Jonah to hopefully gain some answers on how to make his plant profitable and productive. What Alex ultimately settles on is that while his plant may be efficient according to some estimates, the problem is high inventories of merchandise and not meeting shipping dates (p. 29). In our Brewer textbook, concepts and objectives such as target profit analysis are used to set and make goals on obtaining certain profit levels. The Goal supports these conclusions…

Armstrong World Industries’ primary range of operation is the design and manufacture of floors and ceiling systems. Operating in the following segments: Building Products, Resilient Flooring, and Wood Flooring, Armstrong has been developing its expertise as an incorporated firm over one hundred twenty four years and is conservative in its range of operation. As stated in investor presentation, Armstrong’s business priority is to “Build core competency of driving specifications in the architect…