If gross profit is $5,500. Office and Adm. Expenses are $1,200. Depreciation is $500. Other indirect expenses are $500. What will be cash profit ?

Cash Profit = ($5500 - $1200 - $500 ))

Cash Profit = $3800

3800 assuming you dont have credit terms with the office and admin expenses supplier and you paid the full expenses within the month without accruing any.

3800 is the cash profit subject to all the admin and other indirect expenses for that period are booked and accounted

Gross Profit                                                 =     $5500   

less Office Admin Expenses                       =     (1200 )   (cash payments)

Less Other Indirect Expenses                    =       (500 )   (cash Payments)

Cash profit                             =      $3800

(Note: Depreciation is not a cash payment)

Cash Profit $3,800/- assuming there is no credit transaction and depreciation is not included in Office and Admin. Expenses.5,500-1,200-500(Indirect Expenses) =3,800/-

Exectly $3,800.

cash profit=5500-(1200+500)=3800

gross profit  5500$

subtract 

office and admin expenses1200

other indirect expenses500

-- cash profit ((3800 ))

= 

cash profit = 

3800 will be the answer 

 

3,800 is the cash

answer  ..3800