P5: Costs are detracted from the salary to give companies benefit for the year. This isn't the same as the trade out their financial balance, in light of the fact that there are liable to be non-trade things out the benefit and misfortune account. For instance, companies won't not have been paid for the greater part of its deals. The deals figure in the benefit and misfortune record is for the deals invoiced amid that timeframe, so the receipts with dates secured by this period. Cash got from clients in admiration of receipts goes ahead to the monetary record. Trading Account: The trading account shows the amount of gross profit made through its business activities such as purchasing opening and closing stock as shows in this graph. …show more content…
1,250,000 ÷ 1,439,000 × 100 = 86.9. The net profit margin is 86.9% and shows that Tesco is good at using its money effectively in turning its sales into profit. This is beneficial to Tesco in many ways and can help them achieve higher profits as they could find other ways to manage the costs effectively to retain a higher profit in the following years to come. Employees The net profit margin can affect its employees in a positive way as the employees would not have to worry about losing their jobs as Tesco wouldn’t be in red alert in terms of controlling its expenses. Employees could also potentially be given a pay rise should the company afford to do so by retaining its profits at the same time. A high net profit margin could also increase the number of employees in Tesco as more people would want to work for the company as they know their jobs will be safe and Tesco will be able to afford to pay them. Suppliers The net profit margin can affect Tesco’s suppliers in a good way as they can see Tesco has a high profit margin. This is good because suppliers will see that Tesco it's turning its sales into profit and they will offer them more deals that will benefit both Tesco and its