1. The net profit of the company is to make up for the previous losses, and then draw 10% of the statutory reserve fund, and then draw 5- 10% of the statutory public welfare fund. When the statutory reserve fund reaches 50% of the registered capital, it may not be withdrawn, and then the dividends of preferred shares are paid, and then the company may withdraw any reserve fund, and finally the profits that can be distributed to ordinary shareholders.
Extended data:
Net profit (income) is the basis of forecasting future cash flow. The estimation of future cash flow is carried out by compiling cash budget, which is an important tool to ensure cash revenue and expenditure management. Among them, the net profit and loss adjustment method is one of the important methods of cash budgeting. It is a method of adjusting the net income of the current period to net cash flow by adjusting the accounting items that affect the profit and loss and cash balance one by one with the net income determined in the expected income statement according to the accrual principle as the starting point of cash preparation.
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