Summary P3 Unit 7 Management Accounting

Neil Patel 40068068 Unit 7 P3




Profit & Loss A/C 2014 (£) 2015 (£) Increase/Decrease % Increase/Decrease Comments

Sales 33,467 29,876 29,876 - 33,467 = -3591 −3591 x 100 Over the course of 2 years
= (2014&2015) the sales figures
33467
-10.73% have decreased by 10.73%
which is

Less Cost of sales 15,430 16,250 16,250 - 15,430 = 820 820 x 100 This is a negative impact due to
= 5.31% the cost of the sales being
15430
increased over the 2 years by a
margin of 5.31%.

Gross Profit 18,037 13,626 13,626 - 18,037 = -4411 −4411 x 100 The gross profit has decreased
= over the 2 years by 24.46%
18037
-24.46% which is a negative towards the
business’s financial figures.

Less Overheads 8,624 4,213 4,213 - 8,624 = -4411 −4411 x 100 The business owes 51.15% less
= -51.15 than 2014 which is a positive as
8624
they get to save more money.

Net Profit 9,413 9,413 9,413 - 9,413 = 0 0 x 100 Net profit compared to the
= 0% previous year has not increased
9413
which means the business has
taken a loss, this is a negative
and could lead to the business
suffering further in the future.


2014 2015
18037 x 100 13626 x 100
Gross profit % = = 53.89% Gross profit % = = 45.61%
33467 29876