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Cash profits means the Cash flows in - cash flows out without deducting and maintaining any provisions & adjustments for depreciation and a amortization etc out of the profit or for which actually we did not pay anything.
The following a formula is applied to calculate the "Cash profit":
Cash Profit = Net profit + Depreciation + Amortized expenses + Other
non-cash expenses.
In other words, cash profit is net cash receipts after deducting all cash expenses. If we use net profit approach to calculate it, we need to add back all non cash expenses & treatments.
Cash Profit = Net profit + Depreciation + Amortized expenses + Other
non-cash expenses.
Cash profit is net cash receipts after deducting all cash expenses. If we use net profit approach to calculate it, we need to add back all non cash expenses & treatments.
Is the process of converting profit and loss statement, based on the method of accrual accounting, (the introduction of revenue even though they did not get cash, and the introduction of accrued expenses even though they did not pay in cash) to a building on the cash method of statement, "where only the introduction of income received in cash, and the introduction of fees paid in cash, "gives cash flow from business operations, which are called" monetary profit. "
Agreed with the answers to colleagues
I agree with Mr. Georh answer
cash profit= profit +depreciation + other non cash expenses
cash sales we are selling the products. simply no credit
Sir just want to add for a big concern cash profit will not show the real figure as there would debtors and creditors involved. Credit sales consist of a large % of sales in many industries. But cash profit is imprtant relating to the working capital of the co .
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