Sorbier SA has operating profit of 1,120,000. Its other income and expenses for the year are: share of profit of an equity-accounted joint venture, 85,000; interest received on cash and cash equivalents, 30,000; loss on an unconsolidated subsidiary, 15,000; interest on a bank loan taken out to raise finance, 140,000 (entity with no specified main business activity, case convention). Calculate profit before financing and income taxes.
- Operating profit
- 1,120,000
- Share of profit of the joint venture
- 85,000
- Interest received on cash and cash equivalents
- 30,000
- Loss on the unconsolidated subsidiary
- 15,000
- Interest on the bank loan raised to obtain finance
- 140,000