Enter the profits at the beginning of the period ($) and the cash and stock dividends ($) into the calculator to determine the Accumulated Profit.
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Accumulated Profit Formula
The following formula is used to calculate the Accumulated Profit.
AP = P – CS
- Where AP is the Accumulated Profit ($)
- P is the profits at the beginning of the period ($)
- CS is the cash and stock dividends ($)
How to Calculate Accumulated Profit?
The following example problems outline how to calculate Accumulated Profit.
Example Problem #1:
- First, determine the profits at the beginning of the period ($). In this example, the profits at the beginning of the period ($) is given as 500.
- Next, determine the cash and stock dividends ($). For this problem, the cash and stock dividends ($) is given as 200.
- Finally, calculate the Accumulated Profit using the equation above:
AP = P – CS
The values given above are inserted into the equation below:
AP = 500 – 200 = 300 ($)
Example Problem #2:
The variables needed for this problem are provided below:
profits at the beginning of the period ($) = 1000
cash and stock dividends ($) = 560
Entering these values and solving gives:
AP = 1000 – 560 = 440 ($)
