Assignment 1: Creating a P&L Statement

Task
Scenario A. Using the template provided create a skeletal P&L statement for a fashion retail
house using the information provided below.
Gross Sales
CRA%
COGS
Net Profit

$625,000
6.5%
38%

$11,687.50

Note: This is a one-month analysis of the retail house's performance.

Complete all fields of P&L statement in dollars and percentages.
Scenario B. Consider that the lease on the retail house's building has expired and rent for the
present location has just increased by $12,000 per month.
Using the template complete the Scenario B section creating a new skeletal P&L in dollars and
complete all fields in dollars and percentages.
Based on the skeletal P&L statements, what plan of action would you suggest to restore the net
profit to its original positive number, as calculated in Scenario A?
Explain how your suggested action would make up for the loss.
Deliverable
Use the given template to document your responses and submit it to the W2: Assignment 1
Dropbox by Saturday, August 31, 2013. You can use the Microsoft Word or Excel template
depending on your comfort you'll be graded on the calculations and not on the choice of
template.
Participation
Start reviewing and responding to your classmates as early in the week as possible. Continue the
discussion through the end of the week. By Monday, September 2, 2013, review and respond to
at least two of your classmates' work, providing constructive feedback, suggestions, questions,
and additional helpful information. Each peer response should be a minimum of 150 words.
Information, comments, and conclusions should be supported by your research and sources.
Keep the following in mind when you are responding to your peers:

Did they discuss any thoughts that you had not considered?

What did you learn from their post?

Grading Scale for Assignment Criteria:

Excellent Good Moderate

Needs
Improvement
5 Points 4.5
4
3.5
Excellent Good Moderate
Needs
Improvement
10 Points 8.5
8
6.5
Excellent Good Moderate
Needs
Improvement
15 Points 12.5
12
9.5
Excellent Good Moderate
Needs
Improvement
20 Points 16.5
16
12.5

Below
Standard
3
Below
Standard
6
Below
Standard
9
Below
Standard
12

Unacceptable
02 Points
Unacceptable
04 Points
Unacceptable
06 Points
Unacceptable

Assignment 1 Grading Criteria

08 Points

Maximum
Points

Content
Correctly calculated the dollars and percentages figures for the
P&L statement for Scenario A.
Correctly calculated the dollars and percentages figures for the
P&L statement for Scenario B.
Suggested a plan of action to restore the net profit to its original
positive number.
Justified the suggested plan of action.

Format
Used the given template to document responses and
submitted it to the W2: Assignment 1 Dropbox by
Saturday, August 31, 2013. Used the Word or Excel
template.
Participation
Commented on at least two peers assignments with specific
remarks within 48 hours of the assignment deadline
Monday, September 2, 2013at least 150 words for each
response.
Comments included at least two of the following:

Questions regarding the content of assignment.

Observations regarding the content of assignment.
Constructive feedback to assist classmates with

10

10
10
10

improving their work.

Vocabulary and topics from the text/lecture should be used to
support your discussion, and sources should be cited in MLA
format.
Total:

50

For assistance with any problems you may have when completing this assignmentORto offer
your assistance to classmates, please use the Problems and Solutions Discussion area located
through the left side navigation link.