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What else can I help you with?
If the income of a business exceeds its costs the money that remains is called the?
profit
How do you calculate profit margin ratio?
net profit/sales
Would you ever pay out dividends when your firms annual net profit is negative?
No, paying out dividends when a firm's annual net profit is negative is generally not advisable. Dividends are typically distributed from profits, and negative earnings indicate financial difficulties. Distributing dividends in such situations could strain the company's cash flow and undermine its ability to invest in necessary operations or cover losses. It's more prudent to retain earnings to stabilize the business.
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
How find net profit in business?
Net Profit is placed in the Credit Side of the Profit & Loss A/c. of the Company and added to the Capital in the Asset Side of the Balance Sheet.
Can a profit margin ratio be negative?
A profit margin can be negative if the company had a negative net income. For eample if the company had $100,000 in net sales, but their net income was ($10,000) then (10,000)/100,000 = (10%) or negative 10%.
How do you calculate net profit margin if there is net loss?
The Gross Profit Margin = Gross Profit/Revenue*100 regardless of weather the Gross Profit is positive or negative (a loss). Therefor, it is acceptable to have a negative Gross Profit Margin.
How can the gross profit be positive while the net profit is negative?
not sure
Can net profit be negative?
Yes, net profit can be negative, which indicates that a company has incurred more expenses than it has generated in revenue during a specific period. This situation is often referred to as a net loss. Negative net profit can result from various factors, including high operational costs, declining sales, or one-time expenses. Consistently negative net profit may signal underlying financial issues that need to be addressed.
Which is better gross profit or net profit?
net profit
What effects do bad debts have on net profit and net loss?
Bad debts are those accounts receivables which have created due to credit sales to customers so if company unable to collect these it will reduce the net profit of company or in case of actual loss it will increase loss amount.
What is a net margin?
The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100
Is net profit the same as net income?
Net profit is not the same as net income. There are many things that can be deducted on a tax return form from net profit that reduce net profit down to net income.
Net Profit calculation?
net profit is a profit after tax(PAT)
Why is your Net Income on bottom line Profit and Loss statement is negative?
Net income is negative which means that either company has earn less revenue or have incurred more expenses then revenue earned.
If net profit after tax is 64000 and sales is 720000 what is the net profit margin?
Net profit margin = 64000 / 720000 * 100 Net profit margin = 8.89%
Formula for net profit ratio?
Net Profit Margin = Net Profit/ Sales Revenue X 100
