Parker Publishing Group Plc
Summary Profit and Loss Account
Audited for the year to March 31st 2007
Revenue from main business, magazine publishing:
Revenue from other activities:
Pay and other employee costs:
Depreciation of fixed assets:
Selling and marketing costs:
Other operational costs:
Total operating costs:
Profit from sale of fixed assets:
Net interest payable:
Profit before tax:
Profit after tax:
Profit retained in the business:
Earnings per share:
A. Match the words from the account summary with the definitions.
a. reduction in value of an asset over time
b. money paid to shareholders
c. asset purchased for long-term use, such as land, buildings and equipment
4 fixed asset
d. after any deductions
e. accounts checked by an independent examiner
f. a person who has invested in the company through buying shares
h. total income
B. Look at the account summary, and answer true or false.
1 Turnover is income after outgoings have been deducted. TRUE / FALSE
2 Salaries and wages were the only major operating cost. TRUE / FALSE
3 Depreciation of fixed assets seriously reduced operating profits. TRUE / FALSE
4 Parker Publishing spent a lot on sales and marketing. TRUE / FALSE
5 The company sold some assets. TRUE / FALSE
6 Nearly all the profits went to the shareholders. TRUE / FALSE
7 Dividends were only 17.4p per shareholder. TRUE / FALSE
8 It was a very bad year for Parker Publishing. TRUE / FALSE
C. Choose the best words to fill the spaces.
1 The year to March 31st can also be called the year ………………….. March 31st.
2 Another term for “main business” is ………………….. business.
3 A company which makes a profit can be described as profitable or …………………..
4 A company which makes a loss can be described as …………………..
5 “Profit before tax” can also be called …………………..
a pre-tax profit
b without-tax profit
c non-tax profit
6 Another word for shareholders (especially in American English) is …………………..
7 Another word for “operating costs” is …………………..
8 A company which makes neither a profit or a loss is said to …………………..
a fall even
b drop even
c break even
A: 1 e, 2 g, 3 h, 4 c, 5 a, 6 d, 7 f, 8 b
1 False. Turnover is total income.
2 False. Others were depreciation of fixed assets and selling and marketing cost.
3 False. The reduction was very small percentage.
4 True – nearly a quarter of their total expenses.
6 False – less than half went to the shareholders.
7 False. Dividends were 17.4p per share.
8 False. They made a healthy profit
C: 1 b, 2 c, 3 b, 4 b, 5 a, 6 b, 7 a, 8 c
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