Question

Develop a list of expense streams for a publicly traded sportswear company

Answer 1

For a publicly traded sports wear company following could be the expenses that it incurs:

1. Operating expenses: Day to day expenses like salaries of employees, store managers etc, janitorial services expenses, rents etc falls under the category of operating expenses. These needs to be fulfilled by firm for running its business.

2. Cost of goods sold: Expenses in this category includes cost prices of goods like sport dresses etc. which are bought and then sold at higher prices.

3. Other expenses: Other expenses include cost related to interest amount to be paid to creditors. Also, money to be distributed in the form of dividends to shareholders. Advertisement expenses also comes under this category.

4. Income tax expense: Company needs to pay income tax to government for income earned by selling various sports wear goods.