The workout asks us to calculate operating profit, EBIT and EBITDA in all periods and to present your answer in thousands It also says assume the cash flow statement impairment is the correct number included in the income statement So the first thing I want to do is find the operating profit, so I look to the income statement and unfortunately I cannot find an operating profit figure We're going to need to calculate this ourselves and there are two ways we can do it. We could do it top down, we could take "Net revenues" subtract off "Cost of goods sold", subtract off "operating expenses" Alternatively I could do bottom up, I could take the "Income before taxation" and then I could strip out the effect of the "Interest and other financial income" You might notice the figure doesn't have brackets around it, therefore it is an income I'm going to do it that way, so I'll take the 547 and I'll take out that 34 of income So when I've done this already, start with income before tax as reported, 547 I want to get rid of that income is 34 which gets me to an operating profit of 512 So operating profit done, I now want to move onto EBIT. I want to go looking for items that might mean non-recurring items And I can see one in the cash flow statement an impairment of fixed assets of 127 Definitely a non-recurring item for me, so I'm going to add that one back and that will get me to EBIT of 513,000 Now to go from EBIT to EBITDA, I need to go looking for depreciation and amortization and I can see that (in this case) is given to me in the cash flow statements So I add back depreciation and amortization and I've now got my EBITDA figure, EBITDA ends up being 545,424.3 Now this is a really good example because sometimes that impairment could actually be embedded within the depreciation and amortization You find the impairment hidden away in the footnotes you add back the 127 and then you add back the depreciation, amortization as well. And what you've done is you've added back the impairment twice. So do be very very careful, if you've just add back depreciation and amortization, you do need to check are there any impairments in there and have I already added them back? In this case not to worry, the depreciation and amortization and impairments were clearly separately reported