Profit and Loss
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.
Then write an essay to address 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, 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.
Deliver your assignment in a Word document, with the P&L pasted from Excel.
Cite at least three credible sources other than the textbook.
Your response should be 3-4 pages in length (not counting the P&L), well written, and in conformity APA Requirements.