Operating Profit Minus Other Revenue And Expenses

Other expenses under the expenses show the major overheads for the business which requires to be reduced to a greater extent in order to increases the profitability of the company.

Operating profit minus other revenue and expenses. Operating income also be known as ebit earnings before interest and taxes as well as can also be referred as ebitda i e. Operating expenses is discussed in detail below. Sales revenue cost of goods sold gross profit operating expenses net income loss. Negative operating income is an operating loss which means that cost of goods sold.

In financial accounting an inflow of money usually from sales or services thru business activities is called as revenue. Operating expenses include selling general and administrative expenses but exclude interest and taxes. Net profit 27 6 2 million. Sources of nonoperating income or nonoperating expense that may be disclosed include amounts earned from dividends interest on securities profits losses on securities net and miscellaneous other income or income deductions.

Gross gross profit is total revenue minus cost of goods sold cogs. Net profit 19 million. The cash operating profit before adjustments of depreciation amortisation. 4 8 21 contents1 revenue definition 2 revenue examples 3 operating revenue definition 4 operating revenue examples 5 non operating revenue definition 6 non operating revenue examples 7 expenses definition 8 expenses examples.

The entire disclosure for other income or other expense items both operating and nonoperating. Operating income revenue minus operating expenses other income expense income from acctg 5110 at university of utah. Interest revenue dividend revenue rent revenue and gain from the sale of property plant and equipment. It is essential to understand the concept of this expense as it is a crucial component in the calculation of operating profit which is then used to calculate net profit which is again a critical factor in the assessment of the financial performance of a company.

Other income and expenses. Gross profit is sales minus cost of goods sold. Expenses and revenues are the main base of the income statement. Bifurcation presentation and measurement of all the components are of high importance and requires professional judgment.

What are some examples of other revenues and gains. Gross profit is the total revenue minus the expenses directly related to the production of goods for sale called the cost of goods sold. The operating income of a company is the gross profit minus operating expenses. Derived from gross profit operating profit reflects the.