Statement of Comprehensive Income (Edexcel A-Level Business): Flashcards
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Statement of comprehensive income
Statement of comprehensive income
Shows profit/loss made over a period (typically one year)
How revenue is shown (VAT)
How revenue is shown (VAT)
Excluding VAT
Cost of sales
Cost of sales
Direct costs of producing goods/services sold
Gross profit formula
Gross profit formula
Revenue - Cost of Sales
Operating profit formula
Operating profit formula
Gross Profit - Selling Expenses - Admin Expenses
Net profit before tax calculation
Net profit before tax calculation
Operating Profit - Finance Costs
The 'bottom line'
The 'bottom line'
Profit after tax (last line on income statement)
Finance costs
Finance costs
Interest paid on borrowed money
Why shareholders use income statement
Why shareholders use income statement
Assess profitability for dividends & investment value
Administrative expenses
Administrative expenses
General running costs not tied to production/sales