Question

3. Pat's Posy Pokers Flower Shoppe is a small business operating out of a friend back shed in Normal Heights for the past 5 years. Pat wants to go big timelll So he rents a new spot on 30th, with great frontage. Now that he is “Big Time" he hires a part-time designer at $15,000 per year, and 1 very part-time driver at $8,000 per year. Pat feels like this new adventure is going to make him big bucks. After year 1 his annual sales are $75,000!!! He is stoked. He submits his paperwork to his buddy Jimmy for doing his end of year bookkeeping and hopes all extra cash from the big year will be in his pocket soon. His costs were: $30,000 flowers, $8,000 vases, baskets & floral foam, $1,200 SDGE, $1000 insurances for car and shop, $2,400 cell phones, $1,600 gas for driver, $500 signage, $500 fix water leak. He knows as a sole proprietor he will only pay 15% taxes. What is Pat's Gross Profit His Net Profit? His Net Profit after Taxes?

Answer 1

ANSWER

DETAILS	AMOUNT($)	AMOUNT($)
SALES(a)		75000
COST OF GOOD SOLD
FLOWERS	30000
VASES,BASKETS&FLORAL FORM	8000
COST OF GOOD SOLD(b)		38000
GROSS PROFIT(a-b)		37000
EXPENSES
DESIGNER SALARY	15000
DRIVER SALARY	8000
SDGE	1200
INSURANCE	1000
CELL PHONE	2400
GAS	1600
SIGNAGE	500
FIX WATER LEAK	500
EXPENSES		30200
NET PROFIT		6800
TAXES		1020
NET PROFIT AFTER TAX		5780