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Vocabulary

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Company finances

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1 Look at this profit and loss account for Supersox, a company which makes socks. Read the sentences (a-h) and write the correct figures in the profit and loss account.

SUPERSOX

Profit and Loss Account

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November 2006
Sales income	1 ..-77J5.0...........
Cost of sales
Labour	2 .......................
Stock movement	3 ........................
Distribution	4.......................
Gross profit	19,650
Overheads
Personnel	5 .......................
Building costs	6.......................
Stationery and publications	217
Telephone	850
Computer costs	7 .......................
Advertising	1,000
Depreciation*	8.......................
Total overheads	17,597
Net profit/loss	+ 2,053

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* the reduction in value of an asset over a period of time In November 2006:

a The total salaries of Staff not involved with production (e.g. administrative Staff) were £7,540.

b The company used raw materials to the value of £750 to make their products. c The company spent £840 on new software, d The company spent £810 on delivering their products.

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UNIT 18 Company finances

e The company earned a total of £27,150 from selling the socks. f The company paid their production Staff £5,940 in salaries. g The estimated fali in value of the company’s assets was £1,000. h They paid £6,100 rent for their office and factory.

2    Complete the following definition.

The net profit or loss is calculated by subtracting the 1 ........................from

the 2.................................

3    Find twelve finance words in the word square. They can be written across, down or diagonally. Three words are written backwards. The clues below will help you.

r	r	t	d	w	1	0	s	s
e	e	u	e	0	c	q	d	s
V	a	r	b	1	r	a	e	0
e	n	n	t	f	e	s	f	r
n	h	0	0	h	d	s	i	g
u	t	V	r	s	i	e	c	P
e	n	e	t	a	t	t	i	k
f	V	r	m	c	0	d	t	P
0	b	a	n	k	r	u	P	t

1    Someone who a company must pay money to

2    Someone who owes money to a company (the opposite of 1)

3    The total sales of a company over a particular period

4    Another word for the money that a company receives over a particular period

5    Rent, electricity bills and administrative costs are all examples of..........

6    The opposite of a profit

7    If a company cannot continue because it is losing money it goes..........

8    The money a company makes before deducting the running costs and taxes

is the..........profit

9    The money a company makes after deducting the running costs and taxes is

the..........profit

10    The amount of money that a company has lost

11    The amount of money going into and coming out of a company

12    Something valuable that a company owns, like land or machinery

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UNIT 18 Company finances