2.3 managing finance M Flashcards
1
Q
define statement of comprehensive income (income statement / profit and loss account)
A
financial documents that calculate profit / loss made by a business. they are usually produced every 12 months
2
Q
what is the formula for gross profit?
A
sales revenue - cost of goods sold
3
Q
what is the formula for operating profit?
A
gross profit - overheads
4
Q
what is the formula for net profit (profit for the year)?
A
operating profit - finance expenses (interest + tax)
5
Q
what is the formula for gross profit margin?
A
gross profit / revenue x 100
6
Q
what is the formula for operating profit margin?
A
operating profit / revenue x 100
7
Q
what is the formula for net profit margin?
A
net profit / revenue x 100
8
Q
A
