01-09-2009, 06:25 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by imranmk3</i>
<br />to calculate capital employeed , how to calculate net profit if follwing info given to u?
1 share holder equity
2 reserves
3 profit before tax
4 tax
5 proposed dividend
6 long term loan
plzz tell what should include in calculation of net profit
imran ([email protected])
Topic
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
hello imran
the method of calculating the company's net profit is explained below
ABC CO
INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMEBER 2002
REVENUE X
COST OF SALES (X)
______
GROSS PROFIT X
OTHER INCOME X
DISTRIBUTION
COST (X)
ADMINISTRATIVE
EXPENSE (X)
OTHER EXPENSE (X)
FINANCE COST (X)
_____
PROFIT BEFORE
TAX X
INCOME TAX (X)
______
NET PROFIT X
SHARE CAPITAL AND RESERVES ARE OWNED BY THE SHAREHOLDERS.. THEY ARE COLLECTIVELY KNOWN AS SHAREHOLDERS EQUITY SHOWN IN BALANCE SHEET..
DIVIDENDS WHICH HAVE BEEN PAID ARE SHOWN IN THE STATEMENT OF CHANGES IN EQUITY. THEY ARE NOT SHOWN IN THE INCOME STATEMENT BUT THEY ARE DEDUCTED FROM RETAINED EARNINGS IN THE BALANCE SHEET.. DIVIDENDS PROPOSED ARE NOT ADJUSTED THEY ARE SIMPLY DISCLOSED BY NOTE..
<br />to calculate capital employeed , how to calculate net profit if follwing info given to u?
1 share holder equity
2 reserves
3 profit before tax
4 tax
5 proposed dividend
6 long term loan
plzz tell what should include in calculation of net profit
imran ([email protected])
Topic
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
hello imran
the method of calculating the company's net profit is explained below
ABC CO
INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMEBER 2002
REVENUE X
COST OF SALES (X)
______
GROSS PROFIT X
OTHER INCOME X
DISTRIBUTION
COST (X)
ADMINISTRATIVE
EXPENSE (X)
OTHER EXPENSE (X)
FINANCE COST (X)
_____
PROFIT BEFORE
TAX X
INCOME TAX (X)
______
NET PROFIT X
SHARE CAPITAL AND RESERVES ARE OWNED BY THE SHAREHOLDERS.. THEY ARE COLLECTIVELY KNOWN AS SHAREHOLDERS EQUITY SHOWN IN BALANCE SHEET..
DIVIDENDS WHICH HAVE BEEN PAID ARE SHOWN IN THE STATEMENT OF CHANGES IN EQUITY. THEY ARE NOT SHOWN IN THE INCOME STATEMENT BUT THEY ARE DEDUCTED FROM RETAINED EARNINGS IN THE BALANCE SHEET.. DIVIDENDS PROPOSED ARE NOT ADJUSTED THEY ARE SIMPLY DISCLOSED BY NOTE..