Financial Formulas
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Uploaded by JoyfulConnemara8570
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Summary
This document provides formulas for calculating various financial metrics, including gross profit, operating profit, and profit after tax. It also explains how to calculate EPS (earnings per share) and retained earnings.
Full Transcript
**Gross Profit** = Revenue - Cost of Sales (COS) **Operating Profit** = Gross Profit - Distribution Costs - Administration Costs **Profit Before Tax** = Operating Profit - Finance Costs **Profit After Tax** = Profit Before Tax - Taxation **Total Comprehensive Income** = Profit After Ta...
**Gross Profit** = Revenue - Cost of Sales (COS) **Operating Profit** = Gross Profit - Distribution Costs - Administration Costs **Profit Before Tax** = Operating Profit - Finance Costs **Profit After Tax** = Profit Before Tax - Taxation **Total Comprehensive Income** = Profit After Tax + Other Comprehensive Income (OCI) EPS: Profit after tax and preferred dividend/ Weighted average no of shares Retained earnings in trial balance -Profit for period - Dividend paid = Retained earnings financial position.
