BE4 summary (based on practice exams)

Profit and loss account/income statement
(goods sold and delivered, realization principle)
Revenue/sales
Cost of sales -
Gross profit =
Operational costs -
Operating profit (EBIT) =
Financial items +/-
Profit before tax =
Taxes -
Profit after tax =
Net profit OR loss

Balance sheet
 Take things from income statement into account.
 If so, calculate differences (e.g. depreciation deducted from original amount)
 Read carefully! Also to dates. Dates could be after 6 months and not 1 year)
 With loan, interest needs to be added to original amount.

Profit FIFO method
First in, first out
Sales – cost of sales = profit

Sales = given (amount of units * selling price)
Cost of sales = First units sold * selling price of that unit
Amount of units left in comparison to sales units * selling price of next unit -
= profit

Profit LIFO method
Last in, first out
Sales – cost of sales = profit

Sales = given (amount of units * selling price)
Cost of sales = Last units sold * selling price of that unit
Amount of units left in comparison to sales units * selling price of unit before -
= profit

Profit WAC (weighted average cost) method
Sales – cost of sales = profit

Y = (amount of units purchased per batch * selling price) / total units purchased
Sales = given (amount of units * selling price)
Cost of sales = sold units * Y -
= profit