Formulas Flashcards
(4 cards)
1
Q
Gross Profit
A
Gross Profit = Revenue - Cost of Goods Sold (COGS)**
2
Q
Operating Profit
A
Operating Profit = Gross Profit - Operating Expenses
3
Q
Net Profit
A
Net Profit = Total Income - Total Expenses
4
Q
Retained earnings
A
Retained earnings = beginning retained earnings (NOT share capital) +/- net income profit (or loss) - dividends
