business math

1. Construct a final profit and loss statement given the following figures.  Give the major factors as both dollar amounts and percentages.  (Spreadsheet)

Opening inventory                              $          34,200

Gross Sales                                                  178,000

Advertising expense                                       7,000

Miscellaneous expense                                  11,000

Purchases, at cost                                          70,000

Closing inventory                                            48,000

Customer returns                                            15,800

Salaries                                                           16,000

Transportation                                                   4,000

Rent                                                                19,000

Cash discounts                                                      3%

1. At House of Crab, beginning inventory was $7340, purchases for the month totaled $32,500, food in production was $650 and closing inventory was $6230.  What was the cost of food sold? (Spreadsheet)
2. In profit and loss statements, discuss the difference importance of dollar amounts vs percentages in analyzing performance. (Absolute vs. Relative terms)
3. Estimated net sales for next year are $100,000, estimated cost of goods sold is $52,000, estimated operating expenses are $43,000.  The buyer’s goal is a net profit of 5%.  Complete an estimated skeletal profit and loss statement to determine the percentage of gross margin needed to achieve the desired profit.  (Spreadsheet)
4. Compare fixed and variable expenses, direct and indirect expenses, and controllable and non-controllable expenses.  Give an example of each.
5. Store A had net sales of $500,000, Gross Margin of 48%, and expenses of $230,000.  Store B had a gross margin of 48%, and gross margin of $300,000 as a dollar amount, with $250,000 in expenses.  Calculate skeletal profit or loss statements for both stores.  Which store is more profitable?  Why? (Spreadsheet)