2nd week : Profit and Loss

Title : 2nd Week : Profit and Loss
       

         Business always deals with a profit and loss. Profit or kita' is the amount by which the sales are greater than the cost while Loss can be defines as less than the cost of buying or if you got a negative Net Profit.

         Our Family has a business of uniforms. We use to make uniforms and also dress for children. My mother has worked in Taytay as a sewer for almost 30 years until now. She started business when she got married with my father. The uniforms that we made are common for public schools like Polos, blouses, and paldas. Some school owners from different provinces go direct to us in ordering their customized uniforms. We have a store in Baclaran, where we rent for it. If I were not mistaken, the starting capital my mother invested was 100,000 pesos, that was apx. the year 1993, she first borrowed money from our family friend. Thanks God our business was still and hoping to be more successful in the future years to come. 

       So much for our business information, Going back to business Math as our topic last June 14, 2012. We discuss about some important formulas in computing  and managing our stock sales by having these sample problems.

1.1 Mr. Aldwin Leynes had net sales amounting 10,530.50 pesos. the cost of goods sold was 5,667.25. the operating expenses amounted to 3,500.00. Find the net profit or the net loss as the case maybe.

In this case, given and Solution

 10,530.50 - net sales(are obtained when refunds are being deducted from the gross sales)
- 5,667.25 - cost of goods sold  (the amount paid for articles bought including the buying expenses)
    4863.25 - gross profit  (is the difference between the net sales and the cost of goods sold)

-   3500.00   - operating expense (selling expenses such as salaries or wages, traveling expenses, etc.)
     1363.25   - net profit (is the amount obtained when all the selling expenses or other cost of doing business are deducted from the gross profit.)

1.2 A bookstore owner had a stock of goods, worth 5,039.80 on June 30. He purchases after that date amounted to 3,450. On July 31 his stock of goods on hand was 4,100.50. How much was the cost of goods sold?

Given and Solution


      5,039.80 - beginning inventory
+    3,450.00 - purchases
      8,489.80 - goods for sale

-     4,100.50 - ending inventory
      4,389.30 - cost of goods sold
   

After learning about some basic elements about business, If you really want to engage yourself in business. One thing for you to be inspired and get motivated the books of Mr. Robert Kiyosaki will help you. I know that we didn't discuss this book in our lesson but its really related to our subject about business.

This book was my highschool T.H.E subject reference. We learned more in this book about the principles of business. The author is Mr. Robert Kiyosaki, one the rich businessman who become successful because of his two dads. You will learn here the opinions of an educated man and the uneducated man about how to get rich. 

This is the book after Rich dad Poor dad, You will learn here the different types of People living in a society  with their way on how they handle money. You will learn here the difference of  the People and their income who are working as an Employee, Self- employed, Business owner, or an Investor. This book will teach on how you are going to handle the money that you save for your future. Being trapped in the game wasn't easy, you might see your properties as an asset but you may not realize that some of those are already liabilities that would race out money out of your pocket. You will see how rich become richer and how poor become poorer. This is a very useful guide in terms of money knowing that it's better to risk than to play safe. You can buy these book on any National Bookstore    branches nationwide.