University Finance: Profit Before Tax Calculation and Analysis Report
VerifiedAdded on 2023/06/04
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Report
AI Summary
This report provides a detailed calculation of a bank's profit before tax for the year 2018, based on provided financial information. The analysis includes a breakdown of revenue streams, such as open accounts, late fees, over-limit fees, cash fees, annual fees, and interchange. It also considers expenditures, including annual operating costs, cost of acquisition, and provision for potential losses, and annual cost of funds. The report highlights key assumptions made during the calculation process, such as the annual operating cost per account, and the percentage used for calculating cost of acquisition and provision. The final profit before tax is determined to be £629,720.00. The report includes definitions of key terms like monthly turnover, annual fees, total revenue, annual operating costs, and provision. It also provides references to relevant accounting and finance literature.
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