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FM8
FM8
M. Syed Kunmir
Current Liabilities Working capital bank borrowings T.loans deferred credit inst falling due in 12 mths public deposits maturing within 12 months unsecured loans, unless the repayment is on deferred terms sundry creditors advances from dealers and customers interest accrued but not paid tax provisions Dividend declared and payable
Operating Profit is arrived deducting selling, administrative and general expenses , provision for bad debts, interest and miscellaneous expenses from the gross profit. ie Op Profit = Gr Prof - (Sel & adm exp + Prov bad debt + mis exp ) Profit Before Tax When other income is added and other expenses are deducted from the operating profit we get profit before Tax ie PBT = Op Profit + oth Inc - oth exp Net Profit When provision for taxes is deducted from the Profit Before Tax we get Net profit ie Net Profit = PBT - taxes