In the financial statements for the year ended 30 June 2019, Javier Limited reported revenue of £900,000, operating profit of £270,000, finance income of £54,000, finance expense of £36,000 and a taxation charge of £63,000. What is Javier Limited's profit before tax % for the financial year ended 30 June 2019?

Question

Quizplus · Accepted Answer

Profit before tax is calculated as operating profit plus finance income minus finance expense. Therefore, (£270,000 + £54,000 - £36,000) = £288,000. Profit before tax % is (£288,000 / £900,000) * 100 = 32%.

In the Financial Statements for the Year Ended 30 June