Calculation of enterprise profit according to financial statements

[subornaakter20]

Let's imagine that a clothing company has negative profits for the year. After analyzing current operations, the top manager has come to the conclusion that the number of sewing machines should be reduced (based on the size of the projected figures) or replaced with new ones in order to reduce maintenance costs, but the control indicator of the volume of goods produced should be increased. All funds remaining after taxes and other payments will be used to implement the approved plan.

The accounting report on profit and loss kuwait mobile phone numbers database (financial results of the enterprise) has the form of a table, where each line is assigned its own code. Therefore, it is possible to calculate key economic indicators in a tabular way. To do this, all data is formed into a table, and the results are obtained by adding or subtracting the numbers indicated in specific cells.

Gross = Revenue – Cost.

Rows: 2100 = 2110 – 2120.

Sales proceeds = Revenue - Cost price - Selling expenses - Management expenses.

Rows: 2200 = 2110 − 2120 − 2210 – 2220.

Balance sheet = Sales revenue + Other income - Other expenses.

Rows: 2300 = 2200 + 2340 – 2350.

Operating = Book value + Interest payable.

Rows: OP = 2300 + 2330.

Net profit = Book value - Current income tax.

Rows: 2400 = 2300 – 2410.

Calculation of enterprise profit using an example
Limited Liability Company "Cozy House", which is engaged in the production and sale of household goods, has the following financial statements based on the results of two years (rubles):