Display wear and tear
Posted: Sat Feb 01, 2025 7:44 am
Depreciation is a gradual transfer of the value of fixed assets and intangible assets owned by an enterprise to the cost of manufactured or sold products, as well as services rendered.
To calculate depreciation, it is necessary to divide the cost of a fixed asset or intangible asset by its service life.
In the example under consideration, the bakery's fixed asset is a professional multi-section oven. It was purchased for 58,000 rubles. The manufacturer's warranty period is 6 years. That is, depreciation is 806 rubles per month (58,000 rubles / 6 years / 12 months).
Article November
Revenue 90000
Selling gingerbread 50000
Selling marshmallows 40000
Variable Costs (Total) -48000
Purchase of consumables and raw materials -40000
Costs of delivering products to customers -8000
Gross profit 42000
Fixed costs (total) -9000
Payment of utility bills -4000
Advertising -5000
Operating profit (EBITDA) 33000
Depreciation and amortization -806
Step 7. Calculate the EBIT indicator
This metric shows the amount of profit peru email list before taxes and other mandatory payments. To calculate it, operating profit (EBITDA) must be reduced by depreciation and amortization.
Article November
Revenue 90000
Selling gingerbread 50000
Selling marshmallows 40000
Variable Costs (Total) -48000
Purchase of consumables and raw materials -40000
Costs of delivering products to customers -8000
Gross profit 42000
Fixed costs (total) -9000
Payment of utility bills -4000
Advertising -5000
Operating profit (EBITDA) 33000
Depreciation and amortization -806
EBIT 32194
Step 8. Display expenses for taxes, credits and other mandatory deductions
The amount of tax deductions depends on the tax system under which the enterprise operates. In the example under consideration, the profit tax for November was 3,600 rubles.
Interest payments on loan payments are calculated in monetary terms as a payment for the period for which the PNL report is generated.
In our example, the self-employed person took out a short-term loan from the bank for one year in the amount of 80,000 rubles at 9% per annum. Therefore, the PNL report must include an expense item for paying interest on this loan in the amount of 600 rubles.
Article November
Revenue 90000
Selling gingerbread 50000
Selling marshmallows 40000
Variable Costs (Total) -48000
Purchase of consumables and raw materials -40000
Costs of delivering products to customers -8000
Gross profit 42000
Fixed costs (total) -9000
Payment of utility bills -4000
Advertising -5000
Operating profit (EBITDA) 33000
Depreciation and amortization -806
EBIT 32194
Interest on loan payments -600
Tax deductions -3600
Step 9. Calculate net profit
This indicator reflects how much financial resources the enterprise's business activity has generated over the period under consideration. It is calculated by subtracting variable and fixed costs, mandatory tax and credit payments, depreciation and amortization from the revenue received over this period of time.
In the period under review, the self-employed individual's net profit from his bakery amounted to RUB 27,994.
Article November
Revenue 90000
Selling gingerbread 50000
Selling marshmallows 40000
Variable Costs (Total) -48000
Purchase of consumables and raw materials -40000
Costs of delivering products to customers -8000
Gross profit 42000
Fixed costs (total) -9000
Payment of utility bills -4000
Advertising -5000
Operating profit (EBITDA) 33000
Depreciation and amortization -806
EBIT 32194
Interest on loan payments -600
Tax deductions -3600
Net profit 27994
To calculate depreciation, it is necessary to divide the cost of a fixed asset or intangible asset by its service life.
In the example under consideration, the bakery's fixed asset is a professional multi-section oven. It was purchased for 58,000 rubles. The manufacturer's warranty period is 6 years. That is, depreciation is 806 rubles per month (58,000 rubles / 6 years / 12 months).
Article November
Revenue 90000
Selling gingerbread 50000
Selling marshmallows 40000
Variable Costs (Total) -48000
Purchase of consumables and raw materials -40000
Costs of delivering products to customers -8000
Gross profit 42000
Fixed costs (total) -9000
Payment of utility bills -4000
Advertising -5000
Operating profit (EBITDA) 33000
Depreciation and amortization -806
Step 7. Calculate the EBIT indicator
This metric shows the amount of profit peru email list before taxes and other mandatory payments. To calculate it, operating profit (EBITDA) must be reduced by depreciation and amortization.
Article November
Revenue 90000
Selling gingerbread 50000
Selling marshmallows 40000
Variable Costs (Total) -48000
Purchase of consumables and raw materials -40000
Costs of delivering products to customers -8000
Gross profit 42000
Fixed costs (total) -9000
Payment of utility bills -4000
Advertising -5000
Operating profit (EBITDA) 33000
Depreciation and amortization -806
EBIT 32194
Step 8. Display expenses for taxes, credits and other mandatory deductions
The amount of tax deductions depends on the tax system under which the enterprise operates. In the example under consideration, the profit tax for November was 3,600 rubles.
Interest payments on loan payments are calculated in monetary terms as a payment for the period for which the PNL report is generated.
In our example, the self-employed person took out a short-term loan from the bank for one year in the amount of 80,000 rubles at 9% per annum. Therefore, the PNL report must include an expense item for paying interest on this loan in the amount of 600 rubles.
Article November
Revenue 90000
Selling gingerbread 50000
Selling marshmallows 40000
Variable Costs (Total) -48000
Purchase of consumables and raw materials -40000
Costs of delivering products to customers -8000
Gross profit 42000
Fixed costs (total) -9000
Payment of utility bills -4000
Advertising -5000
Operating profit (EBITDA) 33000
Depreciation and amortization -806
EBIT 32194
Interest on loan payments -600
Tax deductions -3600
Step 9. Calculate net profit
This indicator reflects how much financial resources the enterprise's business activity has generated over the period under consideration. It is calculated by subtracting variable and fixed costs, mandatory tax and credit payments, depreciation and amortization from the revenue received over this period of time.
In the period under review, the self-employed individual's net profit from his bakery amounted to RUB 27,994.
Article November
Revenue 90000
Selling gingerbread 50000
Selling marshmallows 40000
Variable Costs (Total) -48000
Purchase of consumables and raw materials -40000
Costs of delivering products to customers -8000
Gross profit 42000
Fixed costs (total) -9000
Payment of utility bills -4000
Advertising -5000
Operating profit (EBITDA) 33000
Depreciation and amortization -806
EBIT 32194
Interest on loan payments -600
Tax deductions -3600
Net profit 27994