Professional Documents
Culture Documents
Sales Revenue
100,000
210,000
II. Which figure in each of the following pairs is higher for a profitable
company?
Cost of sales/ sales revenue
Gross profit/ Net profit
EBIT/ EBITDA
Net profit/ Pre-tax income
Income tax/ Net profit
III. Look at the P&L on p16, textbook and answer the following questions
1. What period does the P&L report? between 2010 and 2011
2. What is the bottom line of the company in 2010? 103,000
3. Any comments on the company’s financial performance over the
period? there was a decrease in the net income
4. Did the company have to pay interest and depreciation? no
5. In case of having to pay these amounts, where are they deducted
from in the I.S? costs of good sold, expenses, taxes
IV. TEXTBOOK
D A
E C
T B