Term Trading Statement
The Term Trading Statement gives the canteen’s gross profit for a term. It is recommended that a Trading Statement be completed each term. This monitors canteen progress and allows you to identify any problems earlier than if completed each semester or annually.
Refer to the corresponding numbers below when completing the Term Trading Statement.
1. Sales – Write in the total amount received from sales. This figure comes from the Income Ledger.
2. Unpaid stock sales – Write in the total amount owed to the canteen by customers who have unpaid accounts. This figure comes from the Outstanding Income and Expenditure Record. If there are no unpaid accounts this figure is zero.
3. Total sales – Calculate the total value of the canteen’s sales. This is (1) + (2): total paid sales plus total unpaid sales.
4. Opening stock – Write in the total value of the stock the canteen had at the start of the term. This figure comes from the stocktake you conducted at the end of the previous term.
5. Total stock purchases (paid) – This figure comes from the Cost of Goods section of the term’s Expenditure Ledger.
6. Total stock purchases (unpaid) – This figure comes from your Outstanding Income and Expenditure Record. If there are no outstanding accounts, this is zero.
7. Closing stock – Write in the value of the stock the canteen has on hand at the end of the term. This figure comes from the end of term stocktake.
8. Total cost of goods sold – This is (4) + (5) + (6) – (7): the value of your stock at the start of the term, plus stock the canteen bought and has paid for, plus stock the canteen has bought but not yet paid for, minus the value of the stock not yet sold.
9. Gross profit – Your gross profit is (3) – (8): total sales minus total cost of goods sold.
10. Percentage mark-up realised – Calculate the average percentage markup the canteen achieved on its sales. This is: (9) / (8) x 100.
11. Expected average mark-up – Copy the average markup you expected for the term from your Markup Schedule.
12. Difference – Calculate the difference between the percentage average markup the canteen realised and the percentage average markup the canteen expected. This is (10) – (11). A negative number means the canteen achieved less markup than expected, a positive number means the canteen achieved a larger average markup than expected.
In the comments section note anything that is relevant to understanding why the canteen achieved the markup it did.
Download the Term Trading Statement template here
Source: Management $ense, Food Sense, 1997.