Fill-in-the-Blanks
5. A(n) ______________ statement, also known as a profit and loss statement, shows the total revenues and expenses for a specific period.
What is income?
6. The ______________ point is the amount of revenue required to cover expenses.
What is break-even?
2. Ashley sells cars. She has $26,000 in cash, $34,000 in inventory, a $4,600 credit card balance, and $7,900 in long-term debt. What is Ashley’s equity?
$47,500
3. Jane owns a dress-making business. Her income last quarter was $8,000, her cost of goods was $1,500, and her total expenses were $3,000. What were Jane’s gross income and net income?
b. Net income: $3,500
What does desired profit margin mean
( cost × desired profit margin) + cost
It is usually expressed as a percentage or decimal
4. ______________ is the owner's remaining value after all liabilities have been deducted.
What is Equity?
1. Ben owns a shoe store. He has a new line of limited-edition running shoes that he will be selling in his store soon. The cost of manufacturing the shoes was $18 per pair, and he wants to make a 20% profit on each pair he sells. What is Ben’s selling price?
$21.60
3. Mindy owns a restaurant. She has $14,200 in cash, $2,600 in inventory, $5,000 in equipment, a $3,800 credit card balance, and $1,400 in long-term debt. What is Mindy’s equity?
$16,600
4. Gabe owns a candied nut cart. He sells his cup of nuts for $6, and his monthly cost is $810. How many cups of candied nuts does Gabe need to sell to break even?
a. 135
What are some expenses
Things like insurance, rent, utilities, and bad debts.
A(n) ______________ is a financial report that shows a company's assets, liabilities, and equity for a specific period. [Basic Financial Statements]
What is a Balance Sheet?
2. Adam owns a restaurant. A new dish is being added to the restaurant’s menu. The cost of making the dish is $6.75, and he wants to make a 33% profit on each dish he sells. What is Adam’s selling price?
$8.98
1. Mallory sells hats. Last month, Mallory had an income of $3,800, her cost of goods was $875, and her total expenses were $1,400. What was Mallory’s gross income?
$2,925
5. Chuck owns a pizza shop. He only sells large pizzas and charges $18 per pizza. His total monthly cost is $2,600. How many pizzas does Chuck have to sell to break even each month?
a. 145
What is the formula for total income?
cost of goods sold - expenses = net income
2. A(n) ______________ price represents how much money it costs a business to make or obtain the products or how much it costs a business to perform the service
What is cost?
3. Cory owns a home goods store. He is about to add a new line of candles to his store. The cost of manufacturing the candles is $8.46 per candle, and he wants to make a 52% profit on each candle. What is Cory’s selling price?
$12.94
2. Karen’s income last month was $5,400. Her cost of goods was $925, and her total expenses were $3,300. What was Karen’s net income?
$1,175
What does the cost mean in
( cost ×desired profit margin) + cost
total cost to produce a product or provide a service.
State formula for gross profit
income - costs of goods = gross profit
1. A(n) ______________ refers to the net profit the company wants to make from the sale and is usually represented using a percentage.
What is profit margin?
1. Mallory owns an auto repair shop. She has $12,000 in cash, $8,000 in inventory, a $4,000 credit card balance, and $3,500 in long-term debt. What is Mallory’s equity?
$12,500
3. Jane owns a dress-making business. Her income last quarter was $8,000, her cost of goods was $1,500, and her total expenses were $3,000. What were Jane’s gross income and net income?
a. Gross income: $6,500
What is the selling price formula
( cost ×desired profit margin) + cost
Part A : What is the formula for tax?
Part B: What is the break-even-point formula?
Part A : Gross profit x tax rate = tax expense
Part B : Total Monthly cost divided by selling price