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What is operating profit ? how is it different from Gross
profit ?
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Answer Posted / col ashwani
Net profit= Op profit-(Dep+Int+Tax)+other incomes-other
write off.
Op profit is not equal to net profit.
Net profit is used in balance sheet not the op profit
op profit= Gross Profit-(AE+SE+ME or all conventional
expenses + Capitalized expenses)
Gross Profit=Sales-Cost of goods sold
Cost of goods sold is nothing but
(Opening stock+Purchases+all direct expenses-closing stock)
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