After Tax Profit = Pretax Profit * (1 - Tax Rate) Solve for Tax Rate Tax Rate = 1 - (After Tax Profit/Pretax Profit)
Gross Profit or Earning Before Interest and Tax (EBIT) Less : Interest Earning Before Tax (EBT) Less : Tax Net Profit or Profit After Tax (PAT)
Net sales - CoGS = Gross Profit Gross Profit - other expenses = Net profit before tax Net profit before tax - tax amount = Net profit after tax
Before
Cash profit means profit after tax plus depreciation.
After Tax Profit = Pretax Profit * (1 - Tax Rate) Solve for Tax Rate Tax Rate = 1 - (After Tax Profit/Pretax Profit)
Gross Profit or Earning Before Interest and Tax (EBIT) Less : Interest Earning Before Tax (EBT) Less : Tax Net Profit or Profit After Tax (PAT)
1. Tax is a deductable item from accounting profit as tax is calculated on profit before tax amount to reach at profit after tax account which is also the net profit available for distribution to share holders of company.
We use the deemed profit in tax because it simplifies the tax.
Net sales - CoGS = Gross Profit Gross Profit - other expenses = Net profit before tax Net profit before tax - tax amount = Net profit after tax
Net profit before interest and tax amount is selected for cash flow from operating activities and after that interest and tax is deducted while net profit before tax means net profit is adjusted for interest already while net profit before interest and tax means net profit is not adjusted for interest as well as for tax.
net profit is a profit after tax(PAT)
Post tax
No.
Before
The pre tax amount was 5,714,285.71. If the tax leaves 70%, that equals exactly 4 million.
Cash profit means profit after tax plus depreciation.