The profit-after-tax is R70,000
The profit before tax R100,000
The operating profit is R112,000
What is profit after-tax?
It is the profit before tax deduction of ordinary and preferred dividends, bearing in mind that the profit after-tax is the sum of all dividends paid and the change, increase in retained earnings in this case as well as the share of non-controlling interest in the profits of the company
profit-after-tax=ordinary dividends+ preferred dividends+ increase in retained earnings+ profits to non-controlling interest
ordinary dividends=R30000
preferred dividends=R5000
increase in retained earnings=R100000-R80000
increase in retained earnings=R20,000
profits to non-controlling interest=R15000
profit-after-tax=R30000+R5000+R20,000+R15000
profit-after-tax=R70,000
profit after-tax=profit before tax*(1-tax rate)
tax rate=305
R70,000=profit before tax*(1-30%)
profit before tax=R70,000/(1-30%)
profit before tax=R100,000
profit before tax=operating profit-interest
operating profit=unknown'
interest=R200000*6%
interest=R12,000
R100,000=operating profit-R12,000
operating profit=R100,000+R12,000
operating profit=R112,000
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Full question with all missing parts:
profiteer Ltd reported retained earnings of R100000 and R80000 in their statement of financial position for the years 2011 and 2010 respectively. The firm's only debt capital is in the form of long-term debentures with a face value of R100000 and an annual coupon rate of 6%.The firm reported an ordinary share dividend of R30000, preference share dividend of R5000 and non-controlling interest of R15000 in their 2011 Statement of Comprehensive Income, the effective tax rate amounts to 30%. based on this information, you are required to indicate what the values of the following items were in the 2011 statement of comprehensive income: Operating profit, profit after tax, profit before tax.
