Calculate Operating profit from the following : Net profit 200000, Carriage outwards 1400, Rent Received 20000,Gain on sale of machinery 25000, Commission Received 6000, Interest on loan 1000 , Charity 10000
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Operating profit = Net profit – Rent received – Profit on sale of machine + Interest on loan – Donation (assuming it is already included in the net profit) = 2,00,000 - 20,000 -30,000 + 40,000 - 4,000 = Rs.1,86,00
it is a capital expenditure
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