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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