They are not the same, although they can be. Gross sales are just what it says...sales before any adjustments. Gross income would include ALL income from all sources. You could sell items, but you could also rent items (which would be shown as Rental Income). Or, you could make a loan to someone and the interest from that loan would be considered income, as well. If you do work for someone (like a mechanic), that would be considered "Labor Income". Also, just because you sell something (which would be included in Gross Sales) doesn't mean it can be regarded as Income immediately. If you accept credit cards or payment plans, a sale does not equal income until the money is actually received by you. If your business only sells items and only accepts cash for sales, then your Gross Sales and your Gross Income would probably be the same.
Gross sales represents the total amount you received for an item; whereas revenues refer to the total amount you received less any discounts.
For example, If you sell your widget for $100, your gross sales are $100. If you offered a 5% discount, then your gross sales are still $100; whereas your revenues are $95 (gross sales minus discount).
No. Gross will be what you make prior to any overhead expenses. For instance: You make a product using labor and material. Sales price less labor and material costs give you a gross profit. From gross profit your overhead and taxes will be paid leaving you with a net profit. Net is always what is left over after everything has been paid.
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.
Gross sales means the actual sales before any deductions of sales returns and discounts while gross profit is that profit which is revenue minus direct expenses.
Not necessarily. Gross sales means total sales from all sources (e.g. both retail and wholesale), before you deduct expenses. Retail sales are sales from retail ventures.
Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income
The easiest method that one could possibly use to determine net sales from gross sales would be to subtract the amount made total (gross) from the amount one paid for the item to sell. The left over figure would be what was made after expenses, or one's net sales. This would be basically the same as figuring out what one's net income is from their gross income on their paycheck each payday.
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There are many gross incomes during the year 2012, but it's the end of the year, and there gross income is $3,166,000.
You must subtract the cost of goods sold from the net sales to get the gross margin (same as gross 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.
Cost of sales is the expenses to earn sales so cost of sales and net sales are not same, formula for gross profit is as follows: Gross profit = Sales - Cost of sales
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
Yes, income is the same thing as revenue, however there are key words to help distinguish between the types of "income" or revenue.Revenue (sometimes referred to as income) is the money a company receives from providing a good or service. Sales Revenue or Sales Income are a good example of how Revenue and Income can be interchangeable. Both refer to the same thing, money brought into a business from "sales".Gross Income (rarely referred to as Gross Revenue) is the income a company has after the cost of goods sold are deducted.Net Income is basically the what's remaining of the Gross Income after all expenses such as Taxes, Salaries, Etc are paid.Retained Earnings is the final step. Retained earnings is simply PROFIT. It is what the company has after dividends are paid out of Net Income, if applicable. Retained earnings is what the company literally made after all COGS, Expenses, and Dividends are paid.
You pay tax on your adjusted gross income. This is not quite the same thing as gross income, but it's definitely not net either.