Module 5: Critical Thinking Marketing

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.

  1. How does the information in the P&L apply to, and benefit, the retailer?
  2. How does the P&L relate to the balance sheet? How are they different and how do they inform one another?
  3. 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:

  1. Be 3 to 4 double-spaced pages, not to include the title page and references,
  2. Cite at least 3 scholarly resources other than the course textbook, and
  3. Be formatted according to the CSU-Global Guide to Writing and APA Requirements (Links to an external site.)

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