How To Calculate Balance Sheet Profit

Table of contents:

How To Calculate Balance Sheet Profit
How To Calculate Balance Sheet Profit

Video: How To Calculate Balance Sheet Profit

Video: How To Calculate Balance Sheet Profit
Video: Complete a Balance Sheet by solving for Retained Earnings 2024, March
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The absolute efficiency of the enterprise is characterized by the indicators of financial results. The most important among them is the profit indicator. The final financial result of the organization's economic and production activities is the balance sheet profit, on the basis of which taxable profit is calculated.

How to calculate balance sheet profit
How to calculate balance sheet profit

Instructions

Step 1

Balance sheet profit (Rb) is calculated as the algebraic sum of three indicators: profit from the sale of the company's products (Rr), the balance of income from non-operating transactions (Rvp) and profit from other sales (Rpr). The formula can be represented as follows:

Рб = Рр + Рвп + Рпр

Step 2

Profit from sales (Рр) is calculated using the following formula:

Pp = Np - Sp - Pnds - Ra

In this formula, Np is the proceeds from the sale of products (goods, services), Sp is the cost of production (only production costs, without commercial and administrative costs), Rnds is value added tax, Ra is excise taxes.

Step 3

The balance of non-operating income and expenses (Rvp) is calculated in accordance with the following values: income from securities owned by the enterprise, income from renting out property, income from equity participation in joint ventures, as well as sanctions, fines and penalties for the supply of low-quality products, for non-fulfillment of contractual obligations, for violation of the terms and conditions of carriage, etc.

Step 4

Profit from other sales (Рпр) includes profit (loss) from the sale of works, products, services of service and auxiliary industries, including the sale of purchased inventory. In addition, other sales of the organization include works and services of a non-industrial nature, which are not included in the volume of products sold by the main activity. Here we are talking about services for major repairs and capital construction, services of transport facilities, the sale of purchased heat energy.

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