Operating Profit Calculation:

To calculate the operating profit, we need to subtract the rent received, gain on the sale of machines, interest on the loan, and donation from the net profit.

Given:
Net profit = Rs. 1,00,000
Rent received = Rs. 10,000
Gain on sale of machines = Rs. 15,000
Interest on loan = Rs. 20,000
Donation = Rs. 2,000

Step 1: Subtract rent received and gain on sale of machines from the net profit.

Net profit - Rent received - Gain on sale of machines = Rs. 1,00,000 - Rs. 10,000 - Rs. 15,000 = Rs. 75,000

Step 2: Subtract interest on the loan and donation from the result obtained in step 1.

Operating profit = Rs. 75,000 - Rs. 20,000 - Rs. 2,000 = Rs. 53,000

Explanation:

Operating profit is a measure of the profitability of a company's core business operations. It indicates the profit generated from the company's primary activities, excluding any non-operating income or expenses.

In this case, we are given the net profit, rent received, gain on sale of machines, interest on the loan, and donation. We need to calculate the operating profit by subtracting these items from the net profit.

The net profit is the overall profit earned by the company before deducting any expenses. In this case, the net profit is given as Rs. 1,00,000.

Rent received is the income generated from renting out assets. In this case, the rent received is Rs. 10,000.

Gain on the sale of machines is the profit earned from selling machines. In this case, the gain on the sale of machines is Rs. 15,000.

Interest on the loan is the cost of borrowing money. In this case, the interest on the loan is Rs. 20,000.

Donation is a voluntary contribution made by the company. In this case, the donation is Rs. 2,000.

By subtracting these items from the net profit, we get the operating profit. Therefore, the operating profit is calculated as Rs. 53,000.

Conclusion:

The operating profit is Rs. 53,000 after subtracting the rent received, gain on the sale of machines, interest on the loan, and donation from the net profit. Operating profit is a key financial metric that reflects the profitability of a company's core business operations.