Explain the your last companies profit and loss statement in a very detailed manner. And explain them why wastage will be happening if inventory is not planned

Question

Accepted Answer

The profit and loss statement of my previous company showed a detailed breakdown of revenue, expenses, and net profit.

The profit and loss statement provides a comprehensive overview of the financial performance of a company.
It includes revenue from sales, cost of goods sold, operating expenses, and net profit.
For example, the revenue section may show the sales generated from different products or services.
The cost of goods sold section may include the direct costs associated with producing or delivering those products or services.
Operating expenses encompass various costs like salaries, rent, utilities, marketing, etc.
Net profit is the final figure after deducting all expenses from the revenue.
If inventory is not planned properly, wastage can occur due to expired or obsolete products.
For instance, if a company overstocks perishable items without considering their shelf life, they may end up being wasted.
Similarly, inadequate inventory planning can lead to stockouts, resulting in lost sales opportunities.
Proper inventory management ensures optimal utilization of resources and minimizes wastage.

Accepted Answer

Every month we got P&L from our finance team store team review all the expenses and if there any issues they send the query on monthly basis

Net sale - COS -COL-COSV= profit

Inventory was very importent for order and when we do order actual count should be to know to store team and per tham we will calculated how much item we need to order to reduce unnecessary wastage.