Can someone please explain to how you would calculate Gross Profit.
My understanding is:
Opening Stock + Stock Purchases = Total Stock Purchased - Closing Stock = Stock Sold
100 + 300 = 400 - 150 = 250
Now I start getting lost.
If I sold my stock for 350, do I divide my Sales of 350 into my Stock Sold of 250 or my Stock Sold of 250 into my Sales of 350.
Am I totally in the dark. Please assist. A detailed explanation will be appreciated.

Best Regards

john6

hi! please claryfy what you want as far as your eg. is concerned of op. stock +purchases-closing stock =sales i.e 250 of sales then gross profit is 50 .but if your sales are 350 then you would have gross loss of 50 as i want to explain that
gross profit =op.stock +purchases -sales -cl.stock. so

john6

hi! please claryfy what you want as far as your eg. is concerned of op. stock +purchases-closing stock =sales i.e 250 of sales then gross profit is 50 .but if your sales are 350 then you would have gross loss of 50 as i want to explain that
gross profit =op.stock +purchases -sales -cl.stock. so explain what do you want to as exactly
whether gp or sales

Phadiel

Hi John6
Sorry, I was not clear in my question. I need to calculate GP % on sales. Hope this makes sense.