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Executive Summary on
describing the amount of net profit of the Company
This report is describing the amount of net profit of the Company. All the calculations of the company are going to be related to the aspects that what is the performance of the report is. The main thing is that in making the performance level profitability reports, the net profit which is calculated is going show who company is working and how the main and the most important aspect is going to get the ideas about what improvements are needed and what amendments are needed to keep the better performance in smother flow.
Table of Content
The main problem with the business
is that they are going to become in more form of loss and as compared to this
they are getting more problem in completing the ratio of finance which is
needed for them to keep their workings smoother and appropriate. the
profit is the most important element of every organization, every organization
runs its business to get maximum profit and enhance its business at a large
scale.
The dividend is
the share of profit in the income of the organization. Shareholders who are a
major part of the organization can enjoy the share of profit as dividends
according to their share ration in the capital of the organization. So the
company has to distribute its all profit that is left after paying all the
expenses and they have to manage its all dues. The dividend is the additional
income of the shareholders that they earn when the company is performing very
well and money is left in the organization after all the settlements. So
dividend is the reaming portion of the profit that can deliver to the
shareholders according to their share in the capital and they enjoy dividend
when the performance of the organization is very well and they can generate a
high level of revenue.
Assets can be considered current if
it can be converted into cash within one year and these resources can be used
in day to day operations and manage the current expenses of the organization.
At the current market price, all the current assets reported in the balance
sheet. Noncurrent assets are considered as long term investment for the company
that has a life of more than one year. They are never converting into cash and
manage the long term needs of the organization and it can give long term
benefits to the organization. Long term
asset normally includes land, equipment, and goodwill of the company that can
give benefit to the long term. These long term assets help the organization to
run its operations for the long term and enhance the level of production. Long
term or fixed assets are the major part of every organization to manage its
production and help in operating all the functions run in the organization.
When the
company performance goes down then the overall area of the organization gets
affected, its production is getting low and its demand in the market also goes
down. Due to this it's all the sales also minimize its level and less revenue
enter the organization. Due to less revenue, the company cannot completely
manage its all expenses, and the company has to face the loss. When the loss
appears in the financial statements of the company then its overall reputation
gets affected. The shareholders and investors who willing to invest in the
company, stop their investment opportunities and those who already invested
consider the facts behind the loss of the company. When the company is facing
loss than its shareholders never receive any kind of dividend and they only
receive their basic amount of interest. The dividend can be obtained in the
case when the organization is generating more profit, and in the form of the
dividend, the shareholders and investors enjoy additional profit in the name of
dividends.
Summing up all the points we can
say that Profit is obtained in the organization when the production
of the company is high and its demand in the market also high. When the demand
for products is high then the sales of the organization automatically high and
it will produce more revenue. When the revenue is high the company can cover
its all expenses and then the remaining amount left after paying all the dues
is known as a profit of the organization which is the right of organization and
normally profit is utilized to expands the business at a high level and
sometimes the profit distributed among the shareholders as a dividend. So
profit is the most important part of the organization and its main purpose to
generate maximum profit among its competitors. Profit is act As the income of
the organization and organization utilizes its income to manage its position
and to overcome its all requirements according to its requirements.
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