Gross profit of any company is calculated by adding all of the accumulated income from any source before expenses (such as taxes, salary, utilities, rent, insurance, materials, etc.) are deducted.
To calculate the cost of goods you have to substract the gross profit from total sales.
Sale or Revenue for the period -less cost of good sold=gross profit cost of good sold is the cost incurred in generating the revenue
Gross profit is the total amount of money that you get. And net profit is the amount left after you subtract your costs. For example, if you sold a toy on Ebay for 100.oo dollars. Your gross profit would be 100. You spent 30 dollars on the items and 6 dollars to list on ebay. subtract your expenses from you gross profit and then that is your NET Profit.
Gross revenue is the total sales/income from the primary business activity. Gross profit is Net Sales minus Cost of Goods Sold. Look at a multiple-step income statement for clarification.
GROSS RECEIPTS is the total amount received prior to the deduction of any allowances, discounts, credits, etc. GROSS REVENUE is income (at invoice values) received for goods and services over some given period of time. GROSS SALES is the total revenue at invoice value prior to any discounts or allowances. Gross Receipts = Gross Revenue = Gross Receipts They are all the same thing, which is the total amount of revenue that a business generates during a year prior to taking any discounts, allowances, etc. Gross Sales - COGS = Gross Profit Gross Receipts - COGS = Gross Profit Gross Revenue - COGS = Gross Profit
To calculate the cost of goods you have to substract the gross profit from total sales.
Gross profit is total revenue from the core activities less total expenses attributable to core activity of the entity.
Restaurant Gross profit = Total generated revenue - total costing *total costing = fixed assets, stock in hand, manpower, utilities, rental and maintenance. *Gross profit=Revenues-Variable costs-fixed costs
Sale or Revenue for the period -less cost of good sold=gross profit cost of good sold is the cost incurred in generating the revenue
Gross profit is a pretty simple economic term. Simply, it is the difference between the total amount of sales minus the cost of the goods being sold.
Cost of goods plus gross profit margin equals to total sales revenue of firm.
Gross profit is the total amount of money that you get. And net profit is the amount left after you subtract your costs. For example, if you sold a toy on Ebay for 100.oo dollars. Your gross profit would be 100. You spent 30 dollars on the items and 6 dollars to list on ebay. subtract your expenses from you gross profit and then that is your NET Profit.
Net income plus operating expenses equals gross profit, or total revenue. To calculate net income, accountants subtract total expenses from total revenues.
for this answer, I have used "ULTIMATE BOOK OF ACCOUNTANCY"Ans : Gross Profit is Total Profit earned by a business.... whereas profit means net profit,it means .. Gross Profit - Indirect expenses + indirect incomes = profit or net profitFor more detail .. please see... "ULTIMATE BOOK OF ACCOUNTANCY" published by vishvas publications....
total revenue minus total cost
You cannot. You can build/compose the total GP from annual sales but you cannot decompose it if the individual annual information that make up the annual GP is lost.
divide the profit total by the number of shares