💰Income Statement Formulas
Net Sales
Gross Sales - Sales Returns - Sales Allowances - Sales Discounts = Net Sales
What It Means
The actual revenue after customers return stuff or get discounts.
Example
Gross Sales:$100,000
Returns:$5,000
Allowances:$2,000
Discounts:$3,000
$100,000 - $5,000 - $2,000 - $3,000
Net Sales = $90,000
Related Formulas
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
Gross Profit
Net Sales - Cost of Goods Sold = Gross Profit
Operating Income
Gross Profit - Operating Expenses = Operating Income
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