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How do you work out the net?

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Anonymous

13y ago
Updated: 4/9/2023

To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit.

Or you 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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Freddy Wunsch

Lvl 10
2y ago

What else can I help you with?