Tag: profit

What is Net Profit?

Gross Profit Less Operating Expenses  = Net profit before tax Less Tax = Net Profit after tax Net Profit shows the profit, after all expenses,

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What is Gross Profit?

Sales Less Cost of Sales = Gross Profit Gross Profit excludes operating expenses, interest and taxation Gross Profit shows the profit after deducting direct costs

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What is Break Even?

Break Even Break Even is point where sales – expenses = 0  It is calculated in units & R. It can take months or years

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What is Sweat Equity?

Sweat Equity, is where the entrepreneur  Contributes time & effort, your “sweat” Contributes knowledge, skills & connections

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What is Owner’s Equity?

Owner’s Equity Owner’s Equity = Capital Contribution + Changes below Owner’s Equity Computation Capital contribution by the owner + Net Profit – Net Loss –

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