RatiosForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › RatiosThis topic has 1 reply, 2 voices, and was last updated 6 years ago by MikeLittle.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts May 23, 2017 at 11:21 pm #387689 AroobaMemberTopics: 58Replies: 45☆☆Hi tutor I have a question regarding June 2014 ratio analysis. why is interest expense being added to profit before interest and tax figure? May 24, 2017 at 5:30 am #387708 MikeLittleKeymasterTopics: 27Replies: 23137☆☆☆☆☆According to the question, profit before tax is $16,250 and that figure is arrived at after having deducted Finance costs – loan note interest $1,750)And we want the figure Profit BEFORE interest and taxSo we have to add back the loan interest of $1,750 and we arrive at $18,000Does that answer it?AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘Ratios’ is closed to new replies.