reporting profit

Percentage change in profit formula

Current years profit- previous years / previous years X100

Ways to measure profit

• gross profit

• Operating profit

• Profit of the year/ net profit

Gross profit and formula

Amount left overs when cost of sales is deducted from total revenue

Total revenue - cost of sales

Operating profit

Considers both cost of sales and operating expenses

Gross profit- other operating expenses

Profit of the year

Takes into consideration the cost of any interest in the business has to pay for borrowing money

Operating profit- intrest

Statement of comprehensive income

Shows Howe much money has been coming into business and how much has been going out over a period of time

Figures can be used to assess a businesses financial perfomance