cash flow statement

19.4 Emma Set out below are the financial statements of Emma, a limited liability company. STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X2 $'000 Sales revenue 2,553 Cost of sales 1,814 Gross profit 739 Distribution costs 125 Administrative expenses 204 Finance costs 60*** ----------------------------------------------------- Profit before tax 350 Income tax expense 240 --------------------------------------------------- Profit for the year 110 ### solve, Profit before tax = 410 (in this question they add back the finance cost ( interest payable) I understand this we need to add it back cause the cash is not out from the business yet. ### but in this question they don't add back the finance cost 19.5 Sioux The following information is available for Sioux, a limited liability company: SUMMARISED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X4 $'000 Profit from operations 2,650 Finance cost (loan note interest) (300) ------------------------------------------------------------------ Profit before tax 2,350 Income tax expense (700) ------------------------------------------------------------------ Net profit for the year 1,650 ### In the solve thy don't add back the finance cost . just put the ***net profit before tex =2350 *** Sir, I have seen your lecture. but I became so confused after seeing these 2 questions please help sir.