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more relevant information to the user and one can see which part of the business get most funds or which one needs additional funding. Question 2 Gross profit: Gross profit shows the income that is generated from the basic functions of the business. This is very important as it represents the margin after the cost of goods sold is deducted from the revenues. This is the first step that any business should be able to cover. With a gross profit of $ 5,790,5,766, Venus is doing more than okay at this stage. Operating income: This is the earning before interests and tax. It shows how much the business would have made in case it did not borrow or before paying the tax expense. An operating income of $1,486 1,473 still shows that Venus is doing quite well. This would have been a good scenario in case it did not have interests expense or in case the corporate tax gets reduced.
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ACCOUNTING CASE STUDY 2 Income before tax and associate: This is the income that is available to the company to be shared and before the tax obligations are met. For Venus, it stood at $3,161 955 showing how well the business is operating profit wise.
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