we all know how this story ended…….but what happened next???

We all know how this story ended…….but what happened next???

• Mr. Wolf wanted revenge.• He decided to invent a special machine• The machine was a wind machine, which

could blow hurricane speed winds….which could easily knock down a small brick house

• News of his invention spread to other wolves in the area. What do you think happened next?

• He set up a business, making and selling these machines!

• It has been running successfully for the last few years, but he is not sure if he made a profit or a loss last year.

• He needs your help now to put together his Trading Account for 2011.

Mr. Wolf Ltd

In 2011, Mr Wolf sold 100 machines. Each machine was sold for €200.What is Mr. Wolf’s sales figure for 2011?

Sales€20,000

Trading, Profit & Loss Account for Mr. Wolf Ltd for year ended 31/12/2011

€ € €

Sales 20,000

Mr. Wolf Ltd

5 machines were returned to Mr. Wolf in 2011.What is Mr. Wolf’s Returns In figure for 2011(Each was sold for €100)?

Returns In€500

Trading, Profit & Loss Account for Mr. Wolf Ltd for year ended 31/12/2011

€ € €

Sales 20,000

Returns In (500) 19,500

Mr. Wolf Ltd

• At the beginning of the year, Mr. Wolf had 20 machines in stock. These had cost him €70 each to make.

• How much is his opening stock worth?

Opening Stock €1,400

Trading, Profit & Loss Account for Mr. Wolf Ltd for year ended 31/12/2011

€ € €

Sales 20,000

Returns In (500) 19,500

Cost of Sales

Opening Stock 1,400

Mr. Wolf Ltd

• During 2011, Mr Wolf purchased parts used for making the machines. The total amount he paid was €11,500.

Purchases €11,500

Trading, Profit & Loss Account for Mr. Wolf Ltd for year ended 31/12/2011

€ € €

Sales 20,000

Returns In (500) 19,500

Cost of Sales

Opening Stock 1,400

Purchases 11,500

Mr. Wolf Ltd

• During 2011, Mr Wolf returned parts which had cost him €250.

Returns Out€250

Trading, Profit & Loss Account for Mr. Wolf Ltd for year ended 31/12/2011

€ € €

Sales 20,000

Returns In (500) 19,500

Cost of Sales

Opening Stock 1,400

Purchases 11,500

Returns Out (250) 11,250

Mr. Wolf Ltd

• The cost of bringing the materials to the factory was €3,450

• What is this called?

Carriage in €3,450

Trading, Profit & Loss Account for Mr. Wolf Ltd for year ended 31/12/2011

€ € €

Sales 20,000

Returns In (500) 19,500

Cost of Sales

Opening Stock 1,400

Purchases 11,500

Returns Out (250) 11,250

Carriage In 3,450

Mr. Wolf Ltd

• Mr. Wolf also had to pay €1,150 Import Duty on his purchases. He had no other Costs of Sales.

Import Duty€1,150

Trading, Profit & Loss Account for Mr. Wolf Ltd for year ended 31/12/2011

€ € €

Sales 20,000

Returns In (500) 19,500

Cost of SalesOpening Stock 1,400Purchases 11,500Returns Out (250) 11,250Carriage In 3,450Import Duty 1,150Cost of Goods Available

17,250

Mr. Wolf Ltd

• On the last day of 2011, when Mr. Wolf closed up his factory, he had 50 wind machines left unsold. The total cost of making these goods was €3,500.

Closing Stock€3,500

Trading, Profit & Loss Account for Mr. Wolf Ltd for year ended 31/12/2011

€ € €

Cost of SalesOpening Stock 1,400Purchases 11,500

Returns Out (250) 11,250Carriage In 3,450Import Duty 1,150Cost of Goods Available

17,250

Closing Stock (3,500)Cost of Sales (13,750)

Trading, Profit & Loss Account for Mr. Wolf Ltd for year ended 31/12/2011

€ € €

Sales 20,000

Returns In (500) 19,500

Cost of Sales

Opening Stock 1,400

Purchases 11,500

Returns In (250) 11,250

Carriage In 3,450

Import Duty 1,150

Cost of goods available 17,250

Closing Stock (3,500)

Cost of Sales (13,750)

Gross Profit 5,750

Mr. Wolf Ltd

• Mr Wolf also had the following business expenses: € Telephone 30Advertising 140Light & heat 60Carriage Out 90General expenses 150

Trading, Profit & Loss Account for Mr. Wolf Ltd for the year ended 31/12/2011

Gross Profit 5,750

Less expenses:

Telephone 30

Advertising 140

Light & heat 60

Carriage Out 90

General Expenses 150 (470)

Net Profit 5,280

The Good News…..• Mr. Wolf made enough money from his

business to buy food and he decided to leave the pigs alone.

• And they all lived…………..