Net sales = Total sales - Sales returns and allowances
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..
How to compute net sales?"
Rate of Return on Net Sales = (Net Income) / (Total 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.
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..
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.
Sales can be calculated by using net income percentage because net income is always reported as a percentage of sales. For exmaple net income of 20 is a 20% of sales so sales will be as follows: 20% sales = net income Sales = Net income / 20 * 100 Sales = 20 /20 * 100 = 100 So Sales = 100
Net sales = Gross sales - (Customer Discounts, Returns, Allowances)
Return on sales = 814100 / 9275000 = 8.777 %
1. Net sales - cost of goods sold = Gross profit Gross profit / Net sales = Gross profit ratio