RE: RE: RE: RE: RE: FIRST QUARTER FINANCIAL RESULTFollowing is a simplified Operating Statement for a fictitious Mining Company. It is used in an accounting course by a company named Pearson in Australia. (I have no reason to believe that the Canadian practice is any different.) You will notice that "Amortization of mine" is Not a cash item. Furthermore, Mine wages or Stores used may or may not have been paid for at the time of the Statement.
Hence, I still doubt your definition of Gross Profit. But once before I thought I was wrong, but I was mistaken! So, you never know! Perhaps one of the "uptodate" accountants on the Board could clarify the situation.
State Mining
Statement of Financial Performance for year ended 30 June 2005
$ $
Sales 150 000
Less Cost of sales
Mine wages 183 000
Stores used 7 000
Amortisation of mine 15 000
205 000
Less inventories of ore 60 000
145 000
Profit on mining 5 000
Less General and administrative expenses 37 000
I Interest on mortgage 25 000
62 000
Net loss $57 000
https://www.pearson.com.au/LinkedFiles/Free/0123603528/AAIF2e%20Body%20Chapter20.pdf