Answer / deepthi reddy

sales
less:variable cost(v)
contribution(c)
less:Fixed cost(f)
EBIT
less:Interest
EBT
less:Tax
PAT

Case- XYZ ltd an IT company is not an MNC based in the USA. ABC ltd an IT company is an MNC based in Germany. The Germany company wants takeover the USA company.When the ABC ltd scans XYZ ltd company's financial statements it shows profit (no fraud or infringement was made in accounts of XYZ ltd).But the finance department of ABC ltd says the XYZ ltd financial statements show various losses. Question- Cite four reasons why XYZ ltd shows loss, while it has made profit?

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