August 2025
Intermediate to advanced
312 pages
7h 33m
English
Content preview from The Business Plan Workbook, 11th Edition
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ASSIGNMENT 18 The profit and loss account
You may by now be concerned about the financial situation at High Note as revealed in the preceding chapter. After all the business has sold £/$/€60,000 worth of goods that it only paid £/$/€30,000 for, so it has a substantial profit margin to play with. While £/$/€39,108 has been paid to suppliers only £/$/€30,000 of goods at cost have been sold, meaning that £/$/€9,108 worth of instruments and sheet music are still in stock. A similar situation exists with sales. High Note has billed for £/$/€60,000 but only been paid for £/$/€48,000; the balance is owed by debtors. The bald figure at the end of the cash-flow projection showing High Note to be in the red to the tune of £/$/€4,908 seems to be missing ...
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