Fadia Limited has the following statement of profit or loss figures for the financial year ended 30 November 2019: Finance expense: £4,000, Finance income: £500, Distribution and selling costs: £45,500, Administration expenses: £58,000, Income tax: £8,000, Profit for the year: £25,000. What is Fadia Limited's operating profit for the year ended 30 November 2019?

Question

Quizplus · Accepted Answer

Operating profit is calculated by adding finance expense and income tax to the profit for the year, and then adding back finance income. (£25,000 + £4,000 + £8,000 + £500 = £36,500).

Fadia Limited Has the Following Statement of Profit or Loss