Pretend you own a dress and suit shop and in need of a line of credit for working capital from your bank. The bank requires a profit and loss statement as part of their underwriting criteria. In an Excel document, create a profit-and-loss statement (P&L) that would be typical for your industry. See the table from Chapter 12 in the textbook, Donna’s Gift Shop, as an example. Do not copy that P&L statement. Then, in a Word document, write about the following:
Define and discuss the significance to the retailer of the line items found in the P&L of Net Sales, Cost of Goods, Gross Profit, Operating Expenses, Net Profit, and any other rows in the P&L you wish to include.
- How does the information in the P&L apply to, and benefit, the retailer?
- How does the P&L relate to the balance sheet? How are they different and how do they inform one another?
- Include any sample calculations that you believe are important to inform your response.
The P&L statement must be in an Excel document and written responses in a Word document, which should meet the following requirements:
- Be 3 to 4 double-spaced pages, not to include the title page and references,
- Cite at least 3 scholarly resources other than the course textbook, and
- Be formatted according to the CSU-Global Guide to Writing and APA Requirements (Links to an external site.)