Profit is an indicator that reflects net income and shows the efficiency of the enterprise. It allows you to form the company's budget and is a source of growth in its total capital.
Instructions
Step 1
Calculate your profit margins. The following ratios are used in the company's accounting system: profit from sales, profit before tax, gross and net profit.
Step 2
Determine your sales profit. To do this, use the following formula: Gross Profit - Business Expenses - Administrative Expenses.
Step 3
Calculate the amount of gross profit, which can be determined by the formula: gross profit = revenue from the sale of goods - the value of the cost of goods sold. It should be borne in mind that the cost of goods sold consists only of the costs associated with the sale of this product. In turn, commercial and administrative costs are accounted for separately.
Step 4
Using the above calculation formulas, first calculate the amount of gross profit, and then using the obtained value, you can determine the profit from sales. For example, during the reporting period, your company sold 100 units of products at a price of 1,000 rubles per unit. The unit cost was 500 rubles. Administrative expenses for the reporting period amounted to 20 thousand rubles, and selling expenses amounted to 25 thousand rubles. The calculation of gross profit will be as follows: gross profit = 100 * 1000 - 100 * 500 = 50,000.
Step 5
Find the sales profit using the previously obtained value. Also plug the existing data into the formula: sales profit = 50,000 - 20,000 - 25,000 = 5,000 rubles.
Step 6
Calculate profit before tax. You can find it by the formula: the amount of profit before tax = the value of profit from sales + other income - other expenses. After that, you can calculate the value of the net profit. To do this, use the following formula: net income = profit before tax + tax deferred asset - current income tax deduction - the amount of the deferred tax liability.
