Profitabilty

Total revenue = Selling Price x Quantity Sold

- the total income generated bu a business from the sale of goods or service oer a period of time before costs are deducted

A payment made by a company to its shareholders usualy out of profits as a return of their investment

The direct costs involved in producing the goods/services sold (e.g. materials, direct labour during the period

Gross profit = Revenue - Cost of sales
the profit made from tading before overheads/ operating costs

The cost incurred in selling and delivering products to customers
- transport, warehousing, marketing -

Operating profit = Gross Profit - Operating costs(admin costs + distributin costs)

PBT = Operating Profit - Finance Costs

PAS = PBT - Tax

Provides a snapshot of the assets and liabilities of a busines at a point of time

PFY = Operating profit - Intrest paid on loans - Tax

same as normal equasions but expressed as a percentage % so x 100

Assets that youve owned for more than 12 months
- machienery viechles buildings land etc -
tangiable assets

Intelectual property, Goodwill, Brand (image)

Legealy required document showing profit or loss made usualy over 12 months or latger businesses do it bianually

Working capitol = current assets - current liabilities