Net Sales is the the Total Sales less the Cost of Goods Sold.
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Net sales refers to revenues earned by businesses after selling a product/service.
Sales less discounts, returns and allowances for damages/losses equals
sales.
Is the same thing as Net Sales.
What is given is: sales / total assets = 2.23 ROA = 9.69% ROE = 16.4% Find: profit margin Debt ratio ROA = Net income / total assets = (Net income/ net sales) x (net sales /total assets)) Net income / net sales = ROA / (net sales / total assets) = 0.969 / 2.23 = 0.0435 Net profit margin = net income / net sales = 0.0435 = 4.35 % ROE = net income / total equity = (net income/net sales) x (net sales/ total assets) X (total assets / total equity) Total assets / total equity = ROE / ((net income/net sales) x (net sales/ total assets)) = 0.164 / (0.0435 x 2.23) = 0.164 / 0.097 = 1.69 Equity multiplier = total assets / total equity Equity multiplier = ROE / ROA = 0.164 / 0.0969 = 1.69 Equity multiplier = 1 + debt-to-equity ratio Debto-to-equity ratio = equity multiplier - 1 = 1.69 - 1 = 0.69 Total debt ratio = debt-to-equity ratio / (1+debt-to-equity ratio) = 0.69 / (1+ 0.69) = 0.41
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Revenue - Cost of Sales Net Profit = Revenue - Expenses Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales. The Net Profit, on the other hand, is Revenue minus ALL Expenses (including cost of sales).
net profit/sales
The Net Sales
Net sales and Net Income are not of the same thing. Net sales is sales less its contra accounts (sales returns and allowances, sales discounts). On the other hand, net income or profit is net sales less the expenses.
Sales Less: Cost of sales Gross Profit Less: Admin Expenses Selling Expenses Other Expenses Net Profit
Net Sales is sales less sales returns and cost of sales is all the direct expenses and overhead applied to whatever type of business you are talking about. Don't confuse Net Sales with Net Income (which is the bottom line of a business's income statement)
Its the net realizable value
Formula for net sales is as follows: Net sales = Actual sales - sales returns and discount allowed
Net sales = Total sales - sales returns and discounts
Net sales = Total sales - Sales returns and allowances
Net Sales..
How to compute net sales?"
sales sales revenue minus net sales revenue
Rate of Return on Net Sales = (Net Income) / (Total Sales)
Is the same thing as Net Sales.