Profit for the year is $54,000 after loan interest of $5,000, and depreciation was $18,000. What is the subtotal before working capital movements?

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Question

Profit for the year is $54,000 after loan interest of $5,000, and depreciation was $18,000. What is the subtotal before working capital movements?

Accepted Answer

$77,000 — Award 1 mark. Working: profit before interest is $54,000 + $5,000 = $59,000, and adding back depreciation of $18,000 gives $77,000. The interest is deducted later as interest paid.

Answer

$77,000

Answer

$59,000

Answer

$72,000

Answer

$67,000

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