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Key Takeaways: Direct

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Gross profit measures how effectively a company generates profit from its direct

labor and direct materials. Gross profit does not include non-production costs.
Only the costs and profit associated with the production facility or factory are
included in gross profit. Some of these costs include the following:

 Direct materials
 Direct labor
 Equipment costs involved in production
 Utilities for the production facility
 Shipping costs

As stated earlier, gross profit is calculated by subtracting COGS from revenue.


For example, if it costs $15,000 in production costs to manufacture a car, and the
car sells for $20,000, the difference of $5,000 is the gross profit on that one car.

KEY TAKEAWAYS

 Gross profit is the revenue earned by a company after deducting the direct


costs of producing its products.
 The direct labor and direct material costs used in production are called
cost of goods sold (COGS).
 Typically, depreciation and amortization are not included in cost of goods
sold and are expensed as separate line items on the income statement.
 However, a portion of depreciation on a production facility might be
included in COGS since it's tied to production—impacting gross profit.
 Selling Expenses in SG&A
 Selling expenses can be broken down into direct and indirect costs
associated with selling a product. Direct selling expenses only occur when
the product is sold and may include shipping supplies, delivery charges,
and sales commissions. Indirect selling expenses are costs that occur
throughout the manufacturing process and after the product is finished
 Direct costs are directly related to the specific product being sold. Indirect
costs are basically items that money is spent on in order to earn sales.
Indirect expenses include product advertising and marketing, telephone
bills, travel costs, and the salaries of sales personnel.
 General and Administrative Expenses (G&A) in SG&A
 G&A expenses are referred to as the overhead of the company. These are
the costs a company must incur to open the doors each day. G&A
expenses are incurred in the day-to-day operations of a business and may
not be directly tied to any specific function or department within the
company. They are more fixed than selling costs because they include rent
or mortgage on buildings, utilities, and insurance. G&A costs also include
salaries of personnel in certain departments, other than those related to
sales or production.

 Benefits of Selling, General & Administrative Expenses (SG&A)


 SG&A plays a key role in a company's profitability and the calculation of its
break-even point, which is the point at which revenue generated and
expenses incurred are the same. It's also one of the easiest places to look
when trying to boost profitability. Cutting operating expenses, such as non-
sales personnel salaries, can usually be done quickly and without
disrupting the manufacturing or sales processes.

 SG&A is also one of the first places managers look to reduce


redundancies during mergers or acquisitions. Following a merger, there
are a number of redundant positions and employees. This area is an easy
target for a management team that's looking to quickly boost profits. For
example, the day that DuPont and Dow Chemical announced their merger
in 2015, the companies announced 5,400 job cuts in an effort to save $750
million in expenses.

TABLE OF CONTENTS
EXPAND

 What Is Cost of Goods Sold?


 Formula and Calculation for COGS
 What Does the COGS Tell You?
 Accounting Methods and COGS
 Exclusions From COGS Deduction
 Cost of Revenue vs. COGS

Formula and Calculation for COGS


\begin{aligned} &\text{COGS}=\text{Beginning Inventory}+\text{P}-\text{Ending Inventory}\\
&\textbf{where}\\ &\text{P}=\text{Purchases during the period}\\ \end{aligned}
COGS=Beginning Inventory +P−Ending Inventory where P=Purchases during the period

Examples of operating expenses include the following:

 Rent
 Utilities
 Office supplies
 Legal costs
 Sales and marketing
 Payroll
 Insurance costs
Example of How to Use COGS
As a historical example, let's calculate the cost of goods sold for J.C. Penney
(NYSE: JCP) for fiscal year (FY) ended 2016. The first step is to find the
beginning and ending inventory on the company's balance sheet:

 Beginning inventory: Inventory recorded on the fiscal year ended 2015 =


$2.72 billion
 Ending inventory: Inventory recorded on the fiscal year ended 2016 =
$2.85 billion
 Purchases during 2016: Using the information above = $8.2 billion

Using the formula for COGS, we can compute the following:

 $2.72 + 8.2 - 2.85 = $8.07 billion

If we look at the company's 2016 income statement, we see that the reported
COGS is $8.07 billion, the exact figure that we calculated here.
Formulas and Calculation for Net Profit Margin
\begin{aligned} \text{Net profit margin} &= \frac{R - COGS - E - I - T}
{R}*100\\ &= \frac{\text{Net income}}{R}*100\\ \textbf{where:}\\ R &=
\text{Revenue}\\ COGS &= \text{The cost of goods sold}\\ E &=
\text{Operating and other expenses}\\ I &= \text{Interest}\\ T &=
\text{Taxes} \end{aligned}Net profit marginwhere:RCOGSEIT
=RR−COGS−E−I−T∗100=RNet income∗100=Revenue=The cost of goo
ds sold=Operating and other expenses=Interest=Taxes
The Formula for Gross Profit Margin
\begin{aligned} &\text{Gross Profit Margin}=\frac{\text{Net
Sales }-\text{ COGS}}{\text{Net Sales}}\\ \end{aligned}
Gross Profit Margin=Net SalesNet Sales − COGS
Breaking Down Business Expenses

 Advertising and marketing expenses
 Credit card processing fees
 Education and training expenses for employees
 Certain legal fees
 License and regulatory fees
 Wages paid to contract employees
 Employee benefits programs
 Equipment rentals
 Insurance costs
 Interest paid
 Office expenses and supplies
 Maintenance and repair costs
 Office lease
 Utility expenses

WHAT IS BALANCE SHEET


KEY TAKEAWAYS

 A balance sheet is a financial statement that reports a company's assets,


liabilities and shareholders' equity.
 The balance sheet is one of the three (income statement and statement of
cash flows being the other two) core financial statements used to evaluate
a business.
 The balance sheet is a snapshot, representing the state of a company's
finances (what it owns and owes) as of the date of publication.
 Fundamental analysts use balance sheets, in conjunction with other
financial statements, to calculate financial ratios

What Are Financial Statements?


Financial statements are written records that convey the business activities and
the financial performance of a company. Financial statements are often audited
by government agencies, accountants, firms, etc. to ensure accuracy and for tax,
financing, or investing purposes. Financial statements include:

 Balance sheet
 Income statement
 Cash flow statement.

 Financial statements are written records that convey the business activities
and the financial performance of a company.
 The balance sheet provides an overview of assets, liabilities, and
stockholders' equity as a snapshot in time.
 The income statement primarily focuses on a company’s revenues and
expenses during a particular period. Once expenses are subtracted from
revenues, the statement produces a company's profit figure called net
income.
 The cash flow statement (CFS) measures how well a company generates
cash to pay its debt obligations, fund its operating expenses, and fund
investments.
KEY TAKEAWAYS
 Accounts payable are amounts due to vendors or suppliers for goods or
services received that have not yet been paid for.
 The sum of all outstanding amounts owed to vendors is shown as the
accounts payable balance on the company's balance sheet.
 The increase or decrease in total AP from the prior period appears on the
cash flow statement.
 Management may choose to pay its outstanding bills as close to their due
dates as possible in order to improve cash flow.
Accounts Receivable
KEY TAKEAWAYS

 Accounts receivable is an asset account on the balance sheet that


represents money due to a company in the short-term.
 Accounts receivables are created when a company lets a buyer purchase
their goods or services on credit.
 Accounts payable is similar to accounts receivable, but instead of money
to be received, it’s money owed. 
 The strength of a company’s AR can be analyzed with the accounts
receivable turnover ratio or days sales outstanding. 
 A turnover ratio analysis can be completed to have an expectation when
the AR will actually be received.
What is the Cash Flow Statement?A Cash Flow Statement (also called the Statement of
Cash Flows) shows how much cash is generated and used during a given time period. It
is one of the main financial statements analysts use in building a three statement model.
The main categories found in a cash flow statement are (1) operating activities, (2)
investing activities, and (3) financing activities of a company and are organized
respectively.  The total cash provided from or used by each of the three activities is
summed to arrive at the total change in cash for the period, which is then added to the
opening cash balance to arrive at the cash flow statement’s bottom line, the closing cash
balance.

One of the primary reasons cash inflows and outflows are observed is to compare the
cash from operations to net income. This comparison helps company management,
analysts, and investors to gauge how well a company is running its operations. The cash
flow statement reflects the actual amount of money the company receives from its
operations.
The reason for the difference between cash and profit is because the income
statement is prepared under the accrual basis of accounting, where it matches revenues
and expenses for the accounting period, even though revenues may actually not have
yet been collected and expenses may not have yet been paid. In contrast, the cash flow
statement only recognizes cash that has actually been received or disbursed.

 
Account format:

2:55 AM (9
hours ago)
Tim Driver (creative sales team)

to me

Dear Shamsul
 
I hope you are all safe and well and your family too, these are very strange time we are
living in and everything changes so quickly.
 
During these difficult times we all have to try and work together and share ideas that
work and the really strong area of sales we are seeing at the moment is obviously
pharmacy but especially online and through social media sales and it feels like people
are bulk buying. When we live in such stressful times and not socially interacting like we
normally would this can have a very negative effect on our skin whether we suffer with
dry atopic skin conditions such as eczema or whether a persons acne flares up so our
sales are surprisingly stable but a lot of demand is for the moisturisers for dry damaged
skin on people hands with using so many traditional alcohol hand sanitizers. So we
thought it would be good to give you some support and help you by providing you with a
promotion to hopefully drive more sales your way, therefore we would like to offer you
a Buy 1 get 1 free on Zeoderm as that has the strongest moisturising properties with
10% Urea to bind moisture while containing Zeolite to eradicate any toxins on the skin.
 
We are very sensitive to the challenges we all face right now but we all have to try and
keep sales coming in and we hope this will help but if you feel that you need any other
promotion,  help or support at this time, please don’t hesitate to let me know and we will
do our very best for you. Please come back to me with your thoughts.
 
Stay safe and good luck.
 
Kindest regards
Tim
 
Tim Driver | International Sales Director
টিম ড্রাইভার (সৃজনশীল বিক্রয় দল)

2:55 পূর্বাহ্ণ (9 ঘন্টা আগে)

আমার কাছে

প্রিয় শামসুল

আমি আশা করি আপনি সকলেই নিরাপদ এবং আপনার পরিবারও ভাল আছেন, এটি আমাদের জীবনে খুব অদ্ভু ত সময় এবং সমস্ত

কিছু এত তাড়াতাড়ি পরিবর্তি ত হয়।

এই কঠিন সময়ে আমাদের সকলকে চেষ্টা করতে হবে এবং একসাথে কাজ করতে হবে এবং এমন ধারণাগুলি ভাগ করে নিতে হবে যা

কাজ করে এবং বিক্রয়টির সত্যই শক্তিশালী ক্ষেত্রটি আমরা এই মুহূর্তে দেখছি স্পষ্টতই ফার্মাসি তবে বিশেষত অনলাইন এবং সোশ্যাল

মিডিয়া বিক্রয়ের মাধ্যমে এবং এটি মনে হয় যে লোকেরা বাল্ক কেনা। আমরা যখন এইরকম চাপের সময়ে বেঁচে থাকি এবং সামাজিকভাবে

আমাদের মত স্বাভাবিকভাবে মতবিনিময় না করি তখন এটি আমাদের ত্বকে খুব নেতিবাচক প্রভাব ফেলতে পারে আমরা শুকনো

অ্যাটপিক ত্বকের যেমন অ্যাকজিমা সহ সমস্যায় ভু গছি বা কোনও ব্যক্তির ব্রণ কিনা তাতে আমাদের বিক্রয় আশ্চর্যজনকভাবে স্থিতিশীল

থাকে তবে প্রচু র traditional তিহ্যবাহী অ্যালকোহল হ্যান্ড স্যানিটাইজার ব্যবহার করে লোকের হাতে শুকনো ক্ষতিগ্রস্থ ত্বকের জন্য

ময়শ্চার‫رز‬গুলির অনেক চাহিদা। সুতরাং আমরা ভেবেছিলাম আশা করি আরও বেশি বিক্রয়ে আপনার পথে চালিত করার জন্য

আপনাকে একটি প্রমোশন সরবরাহ করে আপনাকে কিছুটা সমর্থন দেওয়া এবং আপনাকে সহায়তা করা ভাল হবে, সুতরাং আমরা

আপনাকে জেডোডার্মের উপরে 1 বেতনের জন্য 1 নিখরচায় অফার দিতে চাই কারণ এর চেয়ে শক্তিশালী ময়েশ্চারাইজিং রয়েছে ত্বকের

যে কোনও বিষাক্ততা নির্মূল করতে জেলিওটযুক্ত থাকাতে আর্দ্রতা বাঁধার জন্য 10% ইউরিয়াযুক্ত বৈশিষ্ট্য।

আমরা এখনই আমাদের সকল চ্যালেঞ্জগুলির জন্য খুব সংবেদনশীল তবে আমাদের সকলকেই চেষ্টা চালিয়ে বেচাকেনা চালিয়ে যেতে হবে

এবং আমরা আশা করি এটি সাহায্য করবে তবে আপনি যদি মনে করেন যে এই মুহুর্তে আপনার অন্য কোনও প্রচার, সহায়তা বা সহায়তা

প্রয়োজন, দয়া করে ডোন ' আমাকে জানাতে দ্বিধা করবেন না এবং আমরা আপনার পক্ষে যথাসাধ্য চেষ্টা করব। আপনার চিন্তা নিয়ে

আমার কাছে ফিরে আসুন দয়া করে।


নিরাপদে থাকু ন এবং সৌভাগ্য কামনা করুন

বিনম্র শ্রদ্ধা

টিম

 
Account Name : GTS Logistics international Ltd
 Account No-: 4002-761192-000
 AB Bank Limited
 Karwan Bazar Branch
Dhaka

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