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Does Sales - cost of goods sold - operating expenses equals net income?
Wiki User
∙ 11y ago
no u iodiot revune - expense = n/i
Wiki User
∙ 11y ago
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In merchandise business sales minus operating expenses equals net income is this statement true or false?
False
How to prepare a income statement?
Sales - cost of goods sold = gross profit. - operating expenses(i.e marketing expenses and administrative expenses) = operating income. + other income - other expenses = income before tax - tax = net income/profit.
Cost of goods sold plus gross profit equals?
Cost of goods plus gross profit margin equals to total sales revenue of firm.
In a merchandise business sales minus operating expenses equals net income?
short answer is Yes but you have to add in cost of merchandise sold. Here is the formula that you useMerchandise BusinessSales - Cost of Merch Sold = Gross profitGross profit - Operating expenses=Net Incomewhereas Service IndustryFees Earned- Operating ExpensesGive you Net Income
How do you calculate operating profit?
Sales Les: Cost of goods sold Gross Profit Less: Operating Expenses Operating Income
What is an operating margin in business?
In business, an operating margin is the revenue of a business minus the operating expenses. It is the ratio of operating income divided by net sales.
Is this statement true or false gross profit minus selling expenses equals net income?
Not really...Gross profit = Net sales - Cost of goods soldThe profit on an item is not dependent upon all of your operating expenses. You would include operating expenses to determine net income for the business, but not to calculate gross profit for the sale of inventory.
Does sales minus cost of merchandise sold minus operating expenses plus or minus other income and expense equal net income?
Yes.
Does Sales promotion expenses come in income statement?
All expenses comes in income statements same as sales promotion expenses are also shown in income statement.
What is difference between Net Income and Net Operating Income?
Net operating income (must be a positive number, otherwise would be net operating loss) is the amount after expenses have been deducted out of sales, BUT before INTEREST and INCOME TAXES have been deducted (also called EBIT: Earning before Interest and Taxes). Therefore, the difference is that Net operating income includes interest and income tax expenses, where as Net Income does not include it. Sales (-)CGS Gross profit (-)Operating expenses/depreciation Net operating Income (EBIT) (-)Interest and income taxes Net Income
How do you calculate your net income after taxes?
Your income before taxes is your operating income, and your income after taxes is your "net" income. * + Net Sales (Sales - Returns) * - Cost of Goods Sold * ------------------------------------ * = Gross Profit (Gross Margin, Gross Income) * - Operating Expenses * ------------------------------------- * = Operating Income * + Gains (not related to usual operations) * - Losses (not related to usual operations) * ----------------------------------------------------- * = Earnings before Interest and Taxes * - Interest * - Taxes * ------------------------------------------------------ * Net Income
Can you show me how to calculate sales in dollars to earn after tax net income of 24000?
You just have to do all the calculations backwards. 24,000 divided by ( 1 - tax rate) = Net income before taxes. Net Income before Taxes + Fixed Expenses + Operating Expenses = Gross Profit Gross profit divided by (1 - variable expense rate) = Total Sales
