Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

• Class : Y11

• Lesson Topic: Finance

• Scheme of Work: Profit & Loss

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Lesson Objectives

ALL (KNOWLEDGE)Define and describe Profit and Loss statement.

MOST (ANALYSIS) Examine and Analyse the components of a Profit and Loss statement.

SOME (EVALUATION ) Evaluate the pros and cons & Justify your views on the usefulness of a Profit and Loss statement.

P&DPlanning and

Data

Higher thinking

Skills

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Planning ToolsP&DPlanning and

Data

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Keyword Definition

(P&L) Profit & Loss Statement

Net Profit

Gross Profit

Dividend

Distributed Profit

Retained Profit

CONNECTIVES

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

What is Profit & Loss (P&L) statement? • Cash flow did not indicate profit for a business. Once we’ve

completed break even, a business can not estimate PROFIT.

• Profit is a key indicator of success!

• P&L indicates what profit is being made.

• There is ore than one type of PROFIT>

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Measuring Profit

• TOTAL SALES

• OR

• TOTAL REVENUE

• GROSS PROFIT

• INDIRECT COSTS / FC

• COST OF SALES

• NET PROFIT

• EXPENSES / VC

• Can you identify an Equation for;

• Gross Profit

• Net Profit

What does Income statement look like?

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Exam Q

• Complete P&L statement for MVB Designs.

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Tasks • Practice, Practice..

• Complete Questions from Chapter in Book to familiarize yourself with the technique of income (P&L) statements.

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

What’s the difference between • Profit and cash

• Profit and Loss

• Gross and Net profit

• Retained and Distributed profit

• Trading and Appropriation Account

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Lesson Objectives

ALL (KNOWLEDGE)Define and describe Profit and Loss statement.

MOST (ANALYSIS) Examine and Analyse the components of a Profit and Loss statement.

SOME (EVALUATION ) Evaluate the pros and cons & Justify your views on the usefulness of a Profit and Loss statement.

P&DPlanning and

Data

Higher thinking

Skills

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Keyword Definition

(P&L) Profit & Loss Statement

Net Profit

Gross Profit

Dividend

Distributed Profit

Retained Profit

CONNECTIVES

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

CONNECTIVES for AnalysisCONNECTIVES for ApplicationCONNECTIVES for Evaluation

COMPARINGEqually…As with…Like…In the same way…Similarly…Even so…Likewise…CAUSE & EFFECT

Consequently… Due to…As a result… Therefore..Because of… Because…

CONCLUDINGFirstly… After…Secondly… Before…Overall… I believe…Finally… I think …In conclusion… it depends…To conclude… short term…Meanwhile… Long term…

CONTRASTINGAlthough… Except…Moreover… If…However… Yet…Apart from… Unless…Despite… As long as…

EMPHASISINGMost importantly…Significantly…Notably…Especially…Above all…In particular…Indeed…

QUALIFYINGDespite… Yet…As long as… Unless…Apart from… If…Moreover… Except…However… Although…

ADDINGIn addition… And…Too… Also…Additionally… As well as…Furthermore…

ILLUSTRATINGFor instance… Such as…In the case of… So…For example…As revealed by…As illustrated by…

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Climb the LadderA-A*

1. To what extent 2. Do you think3. Evaluate whether (8-10m) 10+ connectives & key words

C-B

1. Explain 2. Compare3. Analyse (5-8m) 5+ connectives & key words

E-D

1. Define 2. Describe3. Identify (2-4m) 2 + connectives & key words

ATDApply to

demonstrate

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Pass the ParcelAdd as much information you can remember from today’s lesson

When the horn blows – pass your sheet to the next table!

RReview the

Learning

Business Section: Finance Further Reading C.32

Keywords – distributed profit, dividend, gross profit, net profit, Profit & Loss (P&L), retained profit

Neighbours

2 things your neighbour has learnt today

1 question your neighbour wants

to ask

RReview the

Learning