BPP Black Friday sale! (28 Nov-1 Dec)

40% discount on all BPP books specially for OpenTuition students!
Get it here >>

Woodbank co

This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
February 7, 2021 at 10:16 am #609507
cadhakan
Participant
- Topics: 71
- Replies: 123
Hi sir,
I do not understand why in ratios with Shaw co when we calculate ROCE in that operating profit is 18000 but why finance cost 1750 is not included???
February 8, 2021 at 8:47 pm #609732
P2-D2
Keymaster
- Topics: 4
- Replies: 7212
Hi,
The finance cost comes after the operating profit and so is not included. If you deducted the finance cost then you would be calculating profit before tax.
Thanks
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.