9609 · 10.1.1
Practice and worked examples for 9609 Statement of profit or loss. Short previews only — attempt the full question in MarkScheme against the official scheme.
Revenue $820 000; cost of sales $492 000; operating expenses $218 000; finance cost $12 000; tax $24 000.
Calculate gross profit, operating profit, and profit for the year.
Gross profit = 820 000 − 492 000 = $328 000
Operating profit = 328 000 − 218 000 = $110 000
Profit for the year = 110 000 − 12 000 − 24 000 = $74 000
Fusion Ltd provides the following data for the year ended 31 December 2023:
Calculate Fusion Ltd's:
This question requires working backwards to find Revenue and then proceeding down the statement.
1. Calculate Revenue
The Gross Profit Margin is given by the formula: Gross Profit Margin = (Gross Profit / Revenue) x 100
We can rearrange this to find Revenue: Revenue = Gross Profit / (Gross Profit Margin / 100)
Calculation: Revenue = Revenue = $1,125,000
2. Calculate Operating Profit
First, find total operating expenses: Operating Expenses = Administrative expenses + Distribution costs Operating Expenses = $120,000 + $85,000 = $205,000
Now, calculate Operating Profit: Operating Profit = Gross Profit - Operating Expenses
Calculation: Operating Profit = $450,000 - $205,000 Operating Profit = $245,000
3. Calculate Profit before tax
Profit before tax is found by deducting net finance costs from operating profit. Profit before tax = Operating Profit - Finance costs
Calculation: Profit before tax = $245,000 - $22,000 Profit before tax = $223,000