Profit and Loss Essay

Profit and loss accounts, balance sheets Profit and loss accounts, balance sheets Two of the most important financial statements for a business are the Profit and Loss Account, and the Balance Sheet. The Profit and Loss Account shows the profit or loss of a business over a given period of time e. g. 3 months, 1 year, etc. In contrast, the Balance Sheet is like a photograph taken at an instant in time giving a picture of what the business owns and what the business owes at that moment in time. As we shall see it will always balance because what the business owns is financed by what the business owes. The Profit and Loss (P&L account) Net profit takes account of other sources of income and expenditure that are not involved in normal operations e. g. interest paid on loans and interest received on having a positive balance in a bank account. Turnover – is the value of sales made in a trading period. It is some eferred to as sale revenue and is calculated by the average price of items sold x the number sold. Cost of sales – calculates the direct costs of manufacturing items, or buying in items to sell them on. Expenses – are the overhead costs of running a business. These overheads can’t be tied down to particular cost units. For example, it would be very difficult to calculate what fraction of the heating cost of a pen factory can be allocated to just one pen. The Balance Sheet is a statement showing the assets, liabilities and owner’s capital of a business at a particular Downloaded from The100 Edition – http://www. he100. co. uk moment in time, for example the year end. T he Balance Sheet balances because the assets that a business possesses at a specific time have been financed either through the provision of capital by the owner’s or by the creation of external liabilities: Value of assets = Value of Liabilities Value of Owner’s capital. There are a number of things that we can see from looking at a balance sheet, for example: 1. The Net Assets of the business, i. e. the difference between the value of the assets and the value of the liabilities. A growth in net assets tends to indicate a growing business. 2. How solvent the business is. In other words, does it have enough assets that are short term, and hence easily converted into cash, to pay any pressing short-term liabilities. Case Example: A typical balance sheet will be set out in the following way (note that we use two columns. The first column is for minor calculations, the second column is for grand totals): Balance Sheet of Superior Traders, as at 31st December 2004 Fixed assets consist of those items that are kept within the business to create wealth over a period of time e. . machinery, equipment, vehicles, computers, etc. Current assets are used in the short period to generate income for a business. For example, in a manufacturing company like Kraft, stocks would represent products that have already been made and are waiting to be sold onto retailers. Typically stocks will be sold on credit for periods of one month, two months, or three months. Retailers buying s tocks on credit from Kraft would become Kraft’s debtors. At the end of the credit period they will pay up in the form of cash, enabling Kraft to buy more raw materials to create further stocks. Creditors due within one year are the sums that a business owes money to in the short period – otherwise known as current liabilities. Net current assets is a measure of how solvent or liquid a business is. Many businesses need to have working capital. Working capital is calculated by subtracting current liabilities from current assets: Working capital = Current assets – Current liabilities Note that the figure for net current assets appear almost in the centre of a balance sheet, and is a figure that many people will look at first to check on the solvency of a business. Total assets – current liabilities is a sum that appears in the balance sheet simply doing what the title suggests. Creditors due after more than one year shows the longer term liabilities of the bsiness. Total net assets is calculated by taking away all the liabilities (both current and long term) from all of the assets (both current and long term). Shareholders’ funds shows the value of the shareholders capital in the business. It will always be the same value as the total net assets and it balances the account. Downloaded from The100 Profit and loss accounts, balance sheets Profit and loss accounts, balance sheets Two of the most important financial statements for a business are the Profit and Loss Account, and the Balance Sheet. The Profit and Loss Account shows the profit or loss of a business over a given period of time e. g. 3 months, 1 year, etc. In contrast, the Balance Sheet is like a photograph taken at an instant in time giving a picture of what the business owns and what the business owes at that moment in time. As we shall see it will always balance because what the business owns is financed by what the business owes. The Profit and Loss (P&L account) One of the most important objectives of a business is to make a profit. The P&L account shows the extent to which it has been successful in achieving this objective. Companies are expected to keep their P&L accounts in certain formats. Typically the P&L account will show the revenues received by a business and the costs involved in generating that revenue. In simple terms: Revenues – Costs = Profits. A typical P&L account will look like the following: Case Study: P&L Account for Superior Traders as at 31/12/2004 You can find out the gross profit of a business by deducting cost of sales from turnover: ? 100,000 – ? 50,000 = ? 0,000 You can find out the operating profit by deducting the expenses from the gross profit: ? 50,000 – ? 30,000 = ? 20,000 You may also come across the term net profit. Operating profit is earned from carrying out a businesses normal operations e. g. producing confectionery, or selling Christmas cards. Net profit takes account of other sources of income and expenditure that are not involved in normal operations e. g. interest paid on loans and interest received on having a positive balance in a bank account. Turnover – is the value of sales made in a trading period. It is sometimes referred to as sale revenue and is calculated by the average price of items sold x the number sold. Cost of sales – calculates the direct costs of manufacturing items, or buying in items to sell them on. Expenses – are the overhead costs of running a business. These overheads can’t be tied down to particular cost units. For example, it would be very difficult to calculate what fraction of the heating cost of a pen factory can be allocated to just one pen. The Balance Sheet is a statement showing the assets, liabilities and owner’s capital of a business at a particular Downloaded from The Times 100 Edition – oment in time, for example the year end. The Balance Sheet balances because the assets that a business possesses at a specific time have been financed either through the provision of capital by the owner’s or by the creation of external liabilities: Value of assets = Value of Liabilities Value of Owner’s capital. The re are a number of things that we can see from looking at a balance sheet, for example: 1. The Net Assets of the business, i. e. the difference between the value of the assets and the value of the liabilities. A growth in net assets tends to indicate a growing business. Creditors due within one year are the sums that a business owes money to in the short period – otherwise known as current liabilities. Net current assets is a measure of how solvent or liquid a business is. Many businesses need to have working capital. Working capital is calculated by subtracting current liabilities from current assets: Working capital = Current assets – Current liabilities Note that the figure for net current assets appear almost in the centre of a balance sheet, and is a figure that many people will look at first to check on the solvency of a business. Total assets – current liabilities is a sum that appears in the balance sheet simply doing what the title suggests. Creditors due after more than one year shows the longer term liabilities of the bsiness. Total net assets is calculated by taking away all the liabilities (both current and long term) from all of the assets (both current and long term). Shareholders’ funds shows the value of the shareholders capital in the business. It will always be the same value as the total net assets and it balances the account. Downloaded from The Times 100 Edition.

How My country save water Essay

I live in Saudi Arabia, people here consume water more than a person needs triple times on world level. Though that my country geographically considered one of driest regions in the world we have two main sources of water: Aquifers. Sea water (desalination). People waste water sometimes without even notice that: while they making ablution, washing a car, cooking, shower†¦etc. When Government noticed how people consumes water they took Preventive methods to save water, such as: Awareness campaigns through the media and educational pamphlets. Free water appliances (taps, shower heads, toilet boxes) were distributed, reportedly resulting in a decrease of residential water use of between 25-35%. Water reuse were way that Saudi handled this issue. Saudi recycler’s 40 percent of the water used for domestic purposes in urban areas. To this end, recycling plants have been built in Riyadh, Jeddah and other major urban industrial centers. For example, recycled water is used for irrigation of farm fields and urban parks, ablution water in mosques is being reused for the flushing of toilets. Dams are used to capture surface water after frequent flash floods. This water is used primarily for agriculture and is distributed through thousands of miles of irrigation canals and ditches to vast tracts of fertile land that were previously fallow. For me as member of my community I can contribute to preserve water: Use the water appliances that government distribute. Educate my community around me stringing with myself and family. Recycle the water that I use if I were able to. For example, while cleaning vegetables or fruit I can use the rest of that water in irrigate plants. Beware of water amount that I use. On the other hand my second example that I noticed here is public roads and how the traffic can be crowded usually in Riyadh. Since Riyadh start urban development, we have noticed how crowded the traffic can be.The road that you used to take to go from your home to your job takes 20 minutes now it  could take hour or more. I think Saudi still in the process of getting a solution. Government and people starts to find out what are the causes and solutions of this bad traffic which are: Most of the student and employees’ go as the same time 6:00 AM. So, as solution we may let them go on different timing. The huge transport trucks move freely at any time. So, as a solution determining time for these trucks at certain time a day Absence of strict rules to those who disobey the system while driving. Also, as solution traffic police should apply the rules with more strict on those who break the law. And more solutions that government or people can do; Have different transport way than cars. That’s why Saudi now is heading to build Riyadh metro expected to start running on 2018. Some youth like Muhammad Al-Farris, who create an app called (Zahma O La) on play and apple store. Google maps can show traffic line. My Resources: Wikipedia,Riyadh Newspaper, Dr.AbdulRahman M. Saleh article Crowded at Riyadh City.

Choose one strength and one weakness of Parsons sick role model. Do Assignment

Choose one strength and one weakness of Parsons sick role model. Do you agree with them Why or why not - Assignment Example One of the strengths of Parson’s sick role model is that it provides a rational background through which people can understand deviant behaviour and excuse it. I agree with this strength because sick people are actually not able to perform normal duties. This is because their health conditions and metabolic activities are impaired. Parson argues that the sick are supposed to be exempted from normal obligations until they recover. Parson enables people to understand the reasons for the sick not working properly; hence, people are made to appreciate the sick role and volunteer to help them during the recovery process (Hart 28). The model also enables doctors to build beneficial relationships with the patients, which prevents physicians from acting on their own interests rather than the interests of the physicians. The weakness in Parsons sick role model is that the model did not consider chronic illnesses and disabilities. I agree with this weakness because Parson was too specific to acute illnesses and avoided a sick role that is permanent and not transitional. Acute illnesses are characterized by patient passivity and physician assertiveness while chronic illnesses involves physicians participating in a treatment plan and patients bearing the responsibility of helping themselves (Hart 32). As people advance in age, chronic illnesses they suffer from in their life can deviance labels, which is not actually the

If you followed all the laws, would that make you a moral person Why Essay

If you followed all the laws, would that make you a moral person Why or why not - Essay Example The readings further offered the insight that under such circumstances it becomes the moral responsibility of citizens in the society to oppose such laws and disobey them. Therefore, as discerned from the core textbooks and outside research, I can discern that when an individual obeys all the laws in society, it does not make him a moral person. Obeying just laws, which are intended for the common good and well being of all the citizens, is the responsibility of every citizen in a country, as emphasized in the core reading and the journal articles I accessed during the research. These are intended to maintain peace and harmony within the society and to protect the weak from the strong. Similarly, laws also seek to prevent crimes, immorality and other evils within the society. Thus, citizens are bound to obey just laws for the prevalence of peace and harmony within the human society and when they break laws they become immoral people. On the other hand, the readings from the textbook chapters and other research materials I know that when unjust laws are enacted by rulers, such laws compromise the concept of common good. Thus, many political philosophers contend that unjust laws are no laws at all but â€Å"acts of violence† (George, 2008, p.194). Human history is replete with instances of exploitation of the weak by the ruling class through discrimination and other atrocities. The Nazi regime of Hitler sets a classic example of immoral rulers, who enacted discriminatory laws for the annihilation of particular races and it was considered as a breaking of law to â€Å"aid and comfort† members of these groups (Forji, 2010, p.156). The citizens of Germany, who had a moral responsibility to live in consonance with the tenets of â€Å"justice, and love for fellow man† failed to stand up to their moral responsibility, which led to the mass murder of millions and thus entailed the violation of common good (p.156). In this context, my readings provide me the

International HRM Case Study Example | Topics and Well Written Essays - 2000 words

International HRM - Case Study Example Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. (Website: http://www.globalization101.org/What_is_Globalization.html Globalization makes use of modern technological advancements and also focuses on the quick transfer of technology, to keep with the changing world. Therefore, Globalization is a phenomenon that charges towards progress and engulfs the whole world, in this process. The development in technology has led to the process of Cloning and other artificial forms of life. Today, we have hybrid varieties of fruits and vegetables being imported from various parts of the world; which truly symbolises globalization. The widespread Globalization has led to the free movement and transfer of goods, capital, technology and people, from one hemisphere to the other. Therefore, there is an influx of numerous commodities across the globe. BACKGROUND INFORMATION International Human Resources Management has gained immense importance today, thanks to the development of foreign policies, foreign relations and globalisation. Foreign Trade has received great impetus due to these factors and companies looking towards expanding their organisations are employing norms and policies to facilitate proper monitoring and maintenance of their employees. Due to growth in commerce and management, strategy planning and execution has become an integral part of organisation. Due to this, International Human Resources Management has come to the forefront. International Human Resources Management seeks to lay down common rules, solutions to problems and personnel management systems to help this new phase of global expansion transform into a success story and to help organisations adapt and procure better results. Working in a country that one is not familiar with, is a great challenge in itself. More so, when it involves the establishment of a branch office of your company or deals with the successful initiation of an extension of your company, in a scenario completely different from the one you are familiar with. Heading these operations that delve into international horizons and expansion plans of your company build up more responsibility that needs to be fulfilled, on your part. Therefore, a great amount of thought-processing and execution must go down into such plans, before embarking on a conclusion. Appar8tus is a US-owned company that has been producing medical tools used in surgery since 1972 and has

Is the U.S. seeking to contain China Essay Example | Topics and Well Written Essays - 1250 words

Is the U.S. seeking to contain China - Essay Example China is believed to be aggressive and power hungry. Over the years it has built-up its military force and deployed them massively in the region. Such moves are seen as a threat to the security and stability of the region and a deliberate attempt by china to assert its power over its neighbours. This action prompted the U.S to construct an off shore alliance with other military forces in the eastern and southern borders of China such as Japan and South Korea. The U.S also formed the SEATO and ANZUS treaties which linked up countries such as Thailand, Philippines, Australia and New Zealand as its allies in the period between 1949 and 1969. It maintained military bases in these regions and also went to the extent of encouraging them to refrain from entering into diplomatic ties with china. However, over the years the Chinese have managed to create a coalition with some of its neighbours who are dedicated to containing Chinese power. Notably these coalition partners include South Korea, Vietnam and the Philippines all of whom previously were U.S allies. This in some circles can be viewed as a deliberate move by the Chinese government to move into the territory previously occupied by the Americans. Such moves are further fuelling tensions of the intentions of such a quest for power and dominance by China. Furthermore, the Chinese constant threats to Japan over the island dispute amid the already heightened tensions created by its military forces are not helping the situation. These islands called Diaoyo by the Chinese and Senkaku by the Japanese has ushered in a new rise to probable aggressions and security instability especially considering Chinas firm stand on the subject. These threats to Japan further escalated when the Chines targeted a Japanese ship with its weapon s radar, a situation that did not go unmentioned when Japans prime minister issued a stern response terming that move as dangerous. An article that appeared in Chinas Daily, by Wang Xiaoxuan, confirmed that the territorial disputes were dangerous and needed prompt action from both parties. China has also been highly vocal criticizing the U.S. and its activities in the region. In 2009,

Consumption Today vs. Consumption Tomorrow Essay

Consumption Today vs. Consumption Tomorrow - Essay Example Brie tarts. Tansy cakes with peppermint cream† for William’s training, gear and other expenses to win in the Rouen tournament. In a sense, it is their capital to â€Å"to glory and riches none of us ever dreamed of†. Taking this in a bigger context such as the choices presented to the government with its consumption today and investment tomorrow, it meant striking the balance between addressing theâ€Å"Eel pie. Brie tarts. Tansy cakes with peppermint cream† of today with the â€Å"glory and riches none of us ever dreamed† of tomorrow. In simpler terms, it meant that government has to allocate its resources to satisfy the need of today (i.e. social security, food security, defense, etch) versus the need of tomorrow. Addressing the need of tomorrow meant investing today and this could have in several forms such as education, research and development, resource exploration, supporting start-up companies etch. Thus, the resources of the government must be effectively allocated so that it could address the needs of its people today as well as