Aug 5, 2008, 08:35 AM
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
Aug 6, 2008, 10:54 PM
Hi! Please claryfy what you want as far as your e.g.. 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
Aug 6, 2008, 10:55 PM
Hi! Please claryfy what you want as far as your e.g.. 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

Aug 7, 2008, 12:39 AM
hi! Please claryfy what you want as far as your e.g.. 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

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