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Profit and Loss (Marketing)

In an Excel spreadsheet, create a profit and loss statement (P&L) for a fictitious company. See the table from the textbook for Donna’s Gift Shop as an example. Do not copy that P&L statement. Create a P&L statement of your own. You may wish to use the company that you will be using for your Portfolio Project and thus get a jump on that assignment.

In a Word document, address the following: 

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  • 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, Taxes, 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 can the retailer use the information?

  • How does the P&L relate to a balance sheet? You may wish to create a balance sheet, but that is optional. Does information in a balance sheet supplement or enhance the information found in the P&L? How do they inform the retailer?

  • Include any calculations, if you wish, that you feel are important to make your response more complete.

    Your P&L must be in an Excel document and written responses in a Word document in APA format. Make your paper 34 pages in length, double spaced, with at least three resources cited other than the course textbook. 

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