Donate SIGN UP

Balance sheet - how do I get the net profit?

Avatar Image
anna2011 | 22:59 Tue 08th Nov 2011 | Business & Finance
12 Answers
Fixed Assets + Working Capital - Long term liabilities = Net Asset

Financed by
Capital + Net profit - Drawings = Net Assets ?

I understood that both formulas need to have the same results, but how do I calculate the Net profit?
Gravatar

Answers

1 to 12 of 12rss feed

Avatar Image
fixed assets = 2750
net WC = 1010
no long term liabilities?

so net assets = 3750

so 2100 + x - 900 = 3750
23:40 Tue 08th Nov 2011
Do you have an income statement?
you need your income statement.....
If this is a theoretical thing, then if you have capital, drawings and a net asset figure (from our first equation thing) you don't need the net profit figure. Surely it would be the difference between capital - drawings = net profit that would equal net profit? (Its late, so I could very probably be wrong!)
Income Sales (minus VAT/excise duties) for net sales then minus cost of goods = Gross Margin
Gross Margin minus Variable costs minus Fixed Costs equals Profit before depreciation and tax.

Then take of your depreciation, calculate your tax, deduct that....net income after tax. Add back depreciation for your cash flow.
Is this school or real?
Question Author
Fixed Assets total 2,750

Current Assets total 1,910

Current Liabilities total 900

Financed by

Capital 2,100
Net Profit ?

Drawings 900
It's school isn't it - far too late for me, but isn't it a simple sum?
This sounds like homework to me
Question Author
Well it's not a homework, but it is for a subject at Uni and I'm just trying to figure out how it works as I have never done this before.
But thanks anyway for your answers!
fixed assets = 2750
net WC = 1010
no long term liabilities?

so net assets = 3750

so 2100 + x - 900 = 3750
Well, it is sort of homework. If I wasnt on my phone (and it wasn't do late) I would try to figure it out. Good luck with it all.
net assets = 3760, that is.

1 to 12 of 12rss feed

Do you know the answer?

Balance sheet - how do I get the net profit?

Answer Question >>

Related Questions

Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.