The document outlines the key components of a profit and loss (P&L) statement, including gross sales, net sales, gross margin, operating expenses such as administration, marketing, and R&D, cost of goods sold, and net profit. It discusses how the P&L statement is used to calculate sales, costs, and profits by subtracting expenses and costs of goods from revenues.

1. Profit and Loss Statement & Composition
Operating Profit
Sales adjustment
Discounts and free of charge items
Operating Expenses – Admin & General
Operating Expenses – Sales & Marketing
Operating Expenses – R&D
Capital cost & Taxes
$$Profit$$
Gross Sales
Net Sales
Gross Margin
Net Profit
Cost of sales or
Cost of Goods and Services provided
Material, Resources,
Sub-contracting, Freight,
Royalties, SW licencies
P&L statement
Sales
-Cost of goods sold
Gross margin
-Operating Expenses
Administration
Marketing
R&D
Operating profit