Verify the yellow column answers and fill out the percentage column as well
Verify the yellow column answers and fill out the percentage column as well
Here to given the details of Preparation of Income Statement. The details of the Calculation for the preparation of Income statement are given below
Gross Sales Revenue - Sales Return and Allowance = Net Sales Revenue
Cost of Good sold = Beg Inventory +Total Purchases -Purchase Return and Allowance -Ending Inventory
Gross Profit = Net Sales Revenue - Cost of Goods Sold
Operating Income = Gross Profit - Total Operating Expenses
Net Profit = Operating income - Taxes.
While Calculating the Percentages of each item this will compare to the Net Sales Revenue of the business as well
Eg: For Gross profit Margin = Gross Profit / Net Sales Revenue * 100
Net Profit Margin = Net Profit / Sales Revenue * 100
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