Calculating operating profit from retained earnings / profit for the year Flashcards
1
Q
Retained earnings at end start of the year =
A
Add: profit for year (This may be missing figure)
Less: Dividends paid
Add: retained earnings at the start of the year
2
Q
Profit for the year =
mix around to get figure needed
A
Profit from operations (missing figure)
Subtract: finance costs (interest)
Subtract: tax charged on operating profit