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To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit.
we get the gross profit by adding your opening stock at the beginning of the year & your annual purchases , deduct your closing stock from this figure & subtract the resulting figure from your annual sales.
In simple words,
GROSS PROFIT = SALES less COST OF SALES.
(Cost of Sales covers all costs related directly to Sales)
NET PROFIT = TOTAL EXPENSES less TOTAL REVENUE
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Differentiate between normal profit and economic profit?
Economic profit is when revenue exceeds total cost of inputs. Normal profit, on the other hand, is net profit less costs.
How do you get net profit?
Net Profit is the relationship between income and expenses. Simply put NET INCOME = Total Revenue - Total Expenses. For a merchandising business (one that sells products instead of services) the formula is a little more complex. Total Revenue - Cost of Merchandise Sold (this is another formula) = Gross Profit Gross Profit -Expenses = Net Income If you are talking about a corporation you would also have to subtract Federal Income Tax before determining Net Income
What do you get when you deduct cost from revenues?
Deducting direct costs from revenues is gross profit while deducting all other remaining cost we get net profit.
What are the similarities between profit maximisation objectives and wealth maximisation objectives?
Both profit maximization and wealth maximization have the objective of increasing the net worth.
Give you a sentence with the word profit?
I bought six apples for one dollar and sold each apple for a quarter, making a fifty-cent profit.Gross profit minus expenses equals net profit.
What is a net profit margin?
The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100
Which is better gross profit or net profit?
net profit
What is a net margin?
The Net Profit Margin is an Expression of the Net Profit as a percentage of the Revenue, where the Net Profit is the Revenue minus all Expenses. The Net Profit Margin can be calculated in the following ways: Net Profit Margin = Net Profit/Revenue*100 [or] Net Profit Margin = (Revenue - all Expenses)/Revenue*100
Is net profit the same as net income?
Net profit is not the same as net income. There are many things that can be deducted on a tax return form from net profit that reduce net profit down to net income.
Net Profit calculation?
net profit is a profit after tax(PAT)
If net profit after tax is 64000 and sales is 720000 what is the net profit margin?
Net profit margin = 64000 / 720000 * 100 Net profit margin = 8.89%
Formula for net profit ratio?
Net Profit Margin = Net Profit/ Sales Revenue X 100
I have net profit dollars how do you calculate net profit percntage?
(Net profit/Net Revenue) * 100 = Net Profit Percentage Ex: Net Revenue = 10,000 USD Expenditure = 7500 USD Profit = 2500 USD Profit Percentage = 2500/10000 * 100 = 25%
Net sales minus cost of goods sold?
Net sales - CoGS = Gross Profit Gross Profit - other expenses = Net profit before tax Net profit before tax - tax amount = Net profit after tax
How do you calculate profit margins?
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Is net income the same as net profit?
Yes. Net income is generally calculated the same way on net profit.
How do you Calculate Net Profit Margin?
Net profit margin is calculated as net income divided by sales.
