How is Dominos pizza financed?



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Hi Binny,
This question is regarding the "Pizza Company" illustration. Say the owner of the company is repaying back the loan, which he had taken for initial capital along with the interest. Will the installment which is being paid for the loan, come under Tax expenses?

1 Answer(s)


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Hi Pradyut, The installment will come under interest expense not Tax. The formula is Revenue - COGS - Operating Expenses - Interest - Tax = Net Income

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