The Income Statement

Question 1

Learn this

Answer 1

Rev minus COS
gross profit minus other expenses
Operating profit minus tax/interest
=profit of the year

Question 2

COS

Answer 2

Tracks how much costs to producd goods/service
Includes-direct labour costs,materials,overheads,electricity

Question 3

Gross profit formula

Answer 3

Sales rev-cost of sales

Question 4

Operating profit formula

Answer 4

Gross profit - expenses

Question 5

Operating profit is

Answer 5

Also called Gross profit
Other costs to business other than sgock e.g admin ,campaign

Question 6

Net profit formula

Answer 6

Operating profit-interest

Question 7

Margin

Answer 7

Divide it and as a %
GP=SR÷COS×100
OP=GP÷expenses×100
NP=OP÷interest×100

Question 8

NP

Answer 8

Net profit
Amount business earns after deducting
To get to this formula need to know gross profit

Question 9

If not profitable

Answer 9

Company wont last long without changes

Question 10

Expenses=

Answer 10

Interest,indirect costs,electricity

Question 11

Sales=

Answer 11

Rev,income,turnover

Question 12

Increase rev by

Answer 12

A sale /discount ads
Prepare a budget
Asses effect of cost management
Develop new business strategy
Reduce error rate-get tech