Arrange the following outcomes in the correct order for calculating profit and loss in the common-size statement

(A) Net Profit

(B) Non-Operating Income

(C) Revenue from Operations

(D) Profit after tax

Choose the correct answer from the options given below:

In a common-size profit and loss statement, items are arranged in the natural flow of calculating profit.

The typical sequence follows the structure of the Income Statement:

Revenue from Operations (C) forms the starting point → It represents the main business revenue (Net Sales)

After deducting Cost of Revenue and Operating Expenses, we arrive at Operating Profit.

Non-Operating Income (B) is then added → These are incomes not related to core operations (like interest received, profit on sale of assets)

Net Profit (A) is calculated next → This represents Profit Before Tax (PBT) after considering all operating and non-operating items

Profit After Tax (D) comes at the end → After deducting tax from Net Profit, we get the final profit available to owners

The sequence is: C → B → A → D

This represents the natural progression from gross revenue to the final distributable profit, which is essential for common-size analysis where each item is expressed as a percentage of Revenue from Operations.

Correct Answer: Option 2: (C), (B), (A), (D)