💰Income Statement Formulas
Gross Profit
Net Sales - Cost of Goods Sold = Gross Profit
What It Means
Your markup on products before paying for operations.
Example
Net Sales:$90,000
COGS:$75,000
$90,000 - $75,000
Gross Profit = $15,000
Related Formulas
Net Sales
Gross Sales - Sales Returns - Sales Allowances - Sales Discounts = Net Sales
Cost of Goods Sold (COGS) - Merchandising
Beginning Inventory + Purchases - Ending Inventory = COGS
Cost of Goods Sold - Manufacturing
Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods = COGS
Operating Income
Gross Profit - Operating Expenses = Operating Income
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