gross sales

Examples of gross sales in the following topics:

• Recording Sales

  • Net sales are gross sales minus sales returns, sales allowances, and sales discounts.
  • In financial ratios that use income statement sales values, "sales" refers to net sales, not gross sales.
  • Gross sales are the sum of all sales during a time period.
  • Net sales are gross sales minus sales returns, sales allowances, and sales discounts.
  • Gross sales do not normally appear on an income statement.

• Sales Forecast Input

  • For financial ratios that use income statement sales values, "sales" refers to net sales, not gross sales.
  • Gross sales are the sum of all sales during a time period.
  • Net sales are gross sales minus sales returns, sales allowances, and sales discounts.
  • Gross sales do not normally appear on an income statement.
  • The sales figures reported on an income statement are net sales.

• Profit Margin

  • Profit margin measures the amount of profit a company earns from its sales and is calculated by dividing profit (gross or net) by sales.
  • The higher the profit margin, the more profit a company earns on each sale.
  • Net profit is the gross profit minus all other expenses.
  • The gross profit margin calculation uses gross profit and the net profit margin calculation uses net profit .
  • The percentage of net profit (gross profit minus all other expenses) earned on a company's sales.

• Total Assets Turnover Ratio

  • This is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.
  • "Sales" is the value of "Net Sales" or "Sales" from the company's income statement".
  • Also referred to as revenue, they are reported directly on the income statement as Sales or Net sales.
  • In financial ratios that use income statement sales values, "sales" refers to net sales, not gross sales.
  • Asset turnover measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company.

• Overview of Merchandising Operations

  • Merchandising is any practice which contributes to the sale of products to a retail consumer.
  • In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer.
  • At a retail in-store level, merchandising refers to the variety of products available for sale and how the products are displayed to stimulate interest and entice customers to make a purchase.
  • Presidents' Day sales are held shortly thereafter.
  • Merchandising is any practice which contributes to the sale of products to a retail consumer.

• Income Statements

  • The Multi-Step income statement (as the name implies) takes several steps to find the bottom line, starting with the gross profit.
  • It then calculates operating expenses and, when deducted from the gross profit, yields income from operations.
  • It is usually presented as sales minus sales discounts, returns, and allowances.
  • This often is referred to as gross revenue or sales revenue.
  • Selling expenses - represent expenses needed to sell products (e.g., salaries of sales people, commissions, and travel expenses; advertising; freight; shipping; depreciation of sales store buildings and equipment, etc.).

• Ratio Analysis and EPS

  • Average collection period: Accounts receivable / (Annual credit sales / 365 days)
  • Gross margin, Gross profit margin or Gross Profit Rate: Gross profit / Net sales
  • Profit margin, net margin or net profit margin: Net profit / Net sales

• Elements of the Income Statement

  • The income statement consists of revenues (money received from the sale of products and services, before expenses are taken out, also known as the "top line") and expenses, along with the resulting net income or loss over a period of time due to earning activities.
  • First, operating expenses are subtracted from gross profit.
  • It is often referred to as gross revenue or sales revenue.

• Individual Taxes

  • Indirect taxes, such as sales or value-added tax, are imposed only when a taxable transaction occurs.
  • Sales tax is an indirect tax levied on the state level, including taxes on retail sale, lease and rental of goods, as well as some services.
  • Many cities, counties, transit authorities, and special purpose districts impose an additional local sales tax.
  • Sales tax is calculated as the purchase price times the appropriate tax rate.
  • This graph shows the effective sales tax rates for the 50 states.

• Defining the Income Statement

  • Income statement, also referred to as profit and loss statement (P&L), revenue statement, statement of financial performance, earnings statement, operating statement or statement of operations, is a company's financial statement that indicates how the revenue (cash or credit sales of products and services before expenses are taken out) is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or "bottom line").
  • The more complex Multi-Step income statement (as the name implies) takes several steps to find the bottom line, starting with the gross profit.
  • It then calculates operating expenses and, when deducted from the gross profit, yields income from operations.
  • An income statement reported on a cash basis is typically used by smaller businesses that record transactions based on the exchange of cash; the revenues and expenses reported reflects cash received on sales and cash paid for expenses for the accounting period.