How do you calculate a company profit

[noss_cire]

Hi all, sorry a dumb question, but just looking at the accounts filed by the company I was working for online on DueDil. How may I calculate the profits of the company from the following information?

Cash 16k
Book Value 3K
Current Liability 55k
Current Assets 46k

Is there a formula I could use?

Cheers

 

[Anna Chandley]

You can't calculate the company profits from those figures.

Where abbreviated accounts are filed it is not possible to calculate profits. You can calculate the movement on the profit and loss reserve but even this does not give you the profit for the year unless you know what dividends have been paid.

The difference in the profit and loss reserve between the prior year and current year will give you a figure for current year profits less dividends paid. A movement of £1 could mean that there was a £1 profit or it could mean that there was £1m profit with £999,999 of dividends paid.

Anna

 

[Backrubber]

Example:

Turnover (sales) = £100,000

Expenses (salaries, materials, etc) = £30,000

Profit = £70,000

Corporation Tax = £14,000

Funds Available for Dividends = £56,000