Inventory

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Leo
Posts: 537
Joined: 05 Apr 2020, 22:31

Inventory

Post by Leo »

Hi,

Please allow me to ask a very basic question :

You've just started a business, and you've spend in the first FY 100€ in wages, bought 100€ of raw materials and 100€ of depreciation of machine to produce a finished product of 300€. And assuming that you didn't sell the product at the end of the FY. In case that you've chosen a P&L by nature, the presentation would be :

Revenue : 0
Changes in inventory +300
Purcahse of raw materials : -100
Employee benefits : -100
Depreciation of machines : -100

PBT : 0

And if you've chosen the P&L by function, it would be :

Revenue : 0
COGS : 0

PBT : 0

Is that right?

Thanks
JRSB
Trusted Expert
Posts: 864
Joined: 01 Mar 2020, 01:10
Location: UK

Re: Inventory

Post by JRSB »

seems ok to me
pub_acco
Trusted Expert
Posts: 308
Joined: 19 Mar 2020, 16:40

Re: Inventory

Post by pub_acco »

LGTM
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