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  • Profit or Loss

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    racquel baga
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    1. The document discusses key concepts in business math including profit, loss, computing profit and loss, and preparing an income statement for a trading firm. 2. It provides examples of how to calculate gross sales, sales discounts, cost of goods sold, and defines break-even point as the sales point where a business neither makes a profit nor loss and revenue equals total cost. 3. The objectives are to differentiate profit and loss, illustrate profit and loss computations, prepare an income statement, define break-even, and compute break-even point.

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    PROFIT OR LOSS

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    1. The document discusses key concepts in business math including profit, loss, computing profit and loss, and preparing an income statement for a trading firm. 2. It provides examples of how to calculate gross sales, sales discounts, cost of goods sold, and defines break-even point as the sales point where a business neither makes a profit nor loss and revenue equals total cost. 3. The objectives are to differentiate profit and loss, illustrate profit and loss computations, prepare an income statement, define break-even, and compute break-even point.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    8 views6 pages

    Profit or Loss

    Uploaded by

    racquel baga
    1. The document discusses key concepts in business math including profit, loss, computing profit and loss, and preparing an income statement for a trading firm. 2. It provides examples of how to calculate gross sales, sales discounts, cost of goods sold, and defines break-even point as the sales point where a business neither makes a profit nor loss and revenue equals total cost. 3. The objectives are to differentiate profit and loss, illustrate profit and loss computations, prepare an income statement, define break-even, and compute break-even point.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    BUSINESS MATH

    PROFIT OR LOSS
    BUYING & SELLING
    At the end of the lesson, the
    students will be able to :

    Lesson
    1. differentiate profit & loss

    2. illustrate how to compute

    Objective
    for profit & loss,
    3. prepare a simple income

    statement for a trading


    firm
    4. define break-even, and

    5. compute for break-even

    point.
    Answer
    Lesson Pre-
    assessment
    on page 126
    Income Statement for a
    Trading Firm
    A trading or merchandising firm buys goods that it sells.

    GROSS SALES, refers to the total sales.

    Sales Discounts & Sales Returns & Allowances, are


    deducted from the grosssales t arrive at the NET SALES

    How much the seller buys the item is the cost of the item,,
    termed as COST OF GOODS SOLD.
    Income Statement for a
    Trading Firm
    INCOME STATEMENT, is the financial statement that shows

    the results of operations.

    If it earns a profit or incurs a loss for a given period of time.

    Generally, a firm prepares financial statements on a


    monthly basis. For tax purposes, it is prepared quarterly or
    annually.
    Break-even Point

    IT IS THE POINT OF SALES WHERE A BUSINESS

    NEITHER MAKES A PROFIT NOR A LOSS

    THE BUSINESS REVENUE IS EQUAL TO THE

    TOTAL COST...

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