Accounting Questions?
Accounting Questions?
Does anyone know how to calculate Operating Profit, Net Profit, and Basic Earnings from the annual statement?
Answers:
Chosen Answer
Kathryn: Operating profit (or operating income) is: Sales Less: Cost of goods sold Less: Operating expenses (those expenses that are part of running the business, not unusual expenses) Net profit (or net income) is: Operating profit Plus or (minus): Other income (expense) (interest expense, gain or loss on sale of fixed assets, etc.) I'm not sure what you mean by "basic earnings."
2007-05-11 16:59:20
Kathryn: Operating profit (or operating income) is: Sales Less: Cost of goods sold Less: Operating expenses (those expenses that are part of running the business, not unusual expenses) Net profit (or net income) is: Operating profit Plus or (minus): Other income (expense) (interest expense, gain or loss on sale of fixed assets, etc.) I'm not sure what you mean by "basic earnings."
2007-05-11 16:59:20