Topic 2 - Using Financial Information (1 Viewer)

[nrgtic]

Hi,
Ok. I've been looking at financial statements for the past 4 hours and im still as confused as ever. How exactly am i supposed to calculate the net profit, gross profit, sales, and the cost of sales? Im starting to think gross profit is calculated by Sales - COGS but im still not too sure if that formula is correct. Can someone please clarify this for me?

 

[jay9nine]

assets = liabilities + owners equity

gross profit= sales - cogs
cogs= opening stock + cartage in - closing stock
net profit = gross profit + other income - expenses

hope this helps if you still dont understand just ask and ill go into more detail

 

[nrgtic]

Phew! Thanks alot! I've got my business studies half yearly tommorow and that really helped alot. Appreciate it heaps, thanks