- Sales - Cost of Goods sold = Gross Profit
- Other Operating Expense = Selling Expenses + Administrative Expenses
- Gross Profit - Other Operating Expense = EBIT (Earnings Before Interest and Tax)
- EBIT - Interest Expense = EBT (Earnings Before Tax)
- EBT - Income-Tax = PAT (Profit After Tax)
Assets
- Cash is the liquid purchasing power that the company has.
- Debtors (Net), the amount of debt that is present with the company.
- Stock, the inventory of items that has been produced and stored in the company. (Stock ~ Inventory)
- Plant & Equipment is the fixed capital
Liabilities
- Sundry creditors are the short term creditors that finance trade
- 8% Debentures are the long term securities that are floated out initially by the company.
- Equity Share capital are that of the Ordinary Share and Preference Share etc.