What is Net Profit Percentage?
March 5, 2012
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Net Profit % before/after Tax = Net Profit before or after Tax /Sales Net Profit % before/after Tax shows the profit per R1 of sales
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What is Gross Profit Percentage?
March 5, 2012
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Gross Profit % is also known as Gross Margin % Gross Profit % = Gross Profit / Sales Higher the gross profit %, higher the
What is Net Profit?
March 5, 2012
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Gross Profit Less Operating Expenses = Net profit before tax Less Tax = Net Profit after tax Net Profit shows the profit, after all expenses,
What is Gross Profit?
March 5, 2012
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Sales Less Cost of Sales = Gross Profit Gross Profit excludes operating expenses, interest and taxation Gross Profit shows the profit after deducting direct costs
What is a provision for Bad Debts?
March 4, 2012
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Provision for Bad Debts 100% of debtors are unlikely to pay the amount owed to the business. A % will not be collected/received Provision for
What is a Bad Debt?
March 4, 2012
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Bad Debt Bad debt is amount owed to the business, that will not be collected/received Bad debt is shown under Expenses in the Income Statement
What is the Debtor Schedule?
March 4, 2012
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Debtor Schedule Debtor schedule usually prepared with the cash budget Debtor schedule shows R to be collected from debtors over the budgeted period Debtor schedule
What is the Debtor collection period?
March 4, 2012
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Debtor Collection Period Collection Period = Debtors/Credit sales * 365 = number of days It shows the number of days from the sale until cash
What are Operating Expenses?
March 4, 2012
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Operating Expenses Operating expenses arise in normal operation & running of the business – the day to day activities Operating Expenses not directly related to
What is a Prepaid Expense?
March 4, 2012
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Prepaid Expense Prepaid expense is expense paid in the current the financial year in respect of the following financial year Prepaid Expense will decrease the