Profit Formulas Flashcards
1
Q
Gross profit
A
Revenue - cost of sales
2
Q
Operating profit
A
Gross profit - fixed overheads
3
Q
Profit before tax
A
Operating profit - financing costs
4
Q
Corporation Tax (%)
A
Charged on operating profit as a % flat rate
5
Q
Net profit
A
Profit before tax - tax
