11 august 2021
Profit is part of the company's income that remains after all the company's expenses, interest due and principal on bonds issued by the company or other loans have been paid. Profit is subject to corporate tax and once taxed, the balance is known as net profit and can be distributed as dividends to the company's shareholders
Our company ABC sells tools that it buys from an importer of the X brand.
2020 sales revenue: BGN 10,000
Cost of purchasing the tools from the importer of brand X: BGN 6,500
Seller's salary cost: BGN 2,000
Profit. BGN 1,100
Net profit: BGN 990