Calculate the gross profit and the sales figures using the income statement approach.

First step - you need to understand each individual components of the income statement (also called a Profit & Loss Statement or P&L Statement):  Sales (Revenue)  The sales figure represents the amount of revenue generated by the business. It is calculated as the total of the number of units sold multiplied by the selling price per unit.  The amount recorded here is the total sales, minus any product returns or sales discounts. Cost of Goods Sold This number represents the costs directly associated with making or acquiring your products. Costs include materials purchased from outside suppliers used in the manufacture of your product, as well as any internal expenses directly expended in the manufacturing process. In a service business where you, as the owner, are the only expense in supplying the service, and you do not pay yourself a salary beyond the company profits, your service expense may be zero. However, in a service business where you pay yourself a salary or have…

MULTIPLE CHOICES The main categories of cash flow activities on the statement of cash flows is/are Choose direct and indirect a merchandising company shows each current and long-term non-cash investing and financing operating, investing, and financing