Answered: Calculate the net profit for a company…

Calculate the net profit for a company given the following information: Total revenue = $100,000, Cost of goods sold = $40,000, Operating expenses = $25,000, and Taxes = $10,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Calculate the net profit for a company given the following information: Total revenue = $100,000, Cost of goods sold = $40,000, Operating expenses = $25,000, and Taxes = $10,000.

Expert Solution

Step 1: Net profit :

Net profit is the financial metric that represents the amount of money a company has earned after deducting all expenses, including taxes and operating costs, from its total revenue. It is a measure of a company's profitability and can be calculated using the following formula:

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