Quizzes & Puzzles1 min ago
Balance sheet - how do I get the net profit?
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?
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?
Answers
fixed assets = 2750
net WC = 1010
no long term liabilities?
so net assets = 3750
so 2100 + x - 900 = 3750
net WC = 1010
no long term liabilities?
so net assets = 3750
so 2100 + x - 900 = 3750
23:40 Tue 08th Nov 2011
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.
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.
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