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Income statement one (IS1) - Coggle Diagram
Income statement one (IS1)
What are final accounts
Show profit/loss at the end of the year
Made off:
Income statement 1
Income statement 2
Statement of financial position
IS1
calculating gross profit/loss:
Sales-cost of sales = gross profit/loss
calculating cost of sales:
opening stock + purchases + carriage inwards + import duty = cost of sales
Terms in IS1
sales
opening stock
purchases
carriage inwards
cost of goods available for sale
import/customs duties
cost of sales
gross profit
less cost of sales
Stock control
having the right amount of stock
Overstocked:
stock may go out of date/fashion
high stock levels may increase level of security/insurace
Understocked:
sales lost to competitors if stock is unavailable to customers
Optimum level = perfect amount
Stocktaking + technology
Stocktaking = counting + recording stock levels
technology in businesses:
EPOS
JIT
Valuing stock
Cost price = price business purchased
retail price = selling price
Calculating R.P
Gross profit/selling price x 100%