Explain The Following Gross Profit?

1.	Explain The Following Gross Profit?
Answer» Gross Profit is obtained by subtracting the COST of goods SOLD from Net sales. Gross Profit = Net Sales – Cost of Goods Sold. Cost of Goods Sold = Opening Stock + Net Purchases + Direct EXPENSES – Closing Stock. And Net Sales = TOTAL Sales – Sales Return.

Answer»

Gross Profit is obtained by subtracting the COST of goods SOLD from Net sales.
Gross Profit = Net Sales – Cost of Goods Sold.
Cost of Goods Sold = Opening Stock + Net Purchases + Direct EXPENSES – Closing Stock.
And Net Sales = TOTAL Sales – Sales Return.

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