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View Full Version : How do I calculate the firms sales, margin and net income?


gloglorious
Sep 17, 2009, 04:28 PM
How do I calculate the firms sales, margin and net income?

morgaine300
Sep 18, 2009, 01:15 AM
Depends on what information you've been given.

Sales should not have to be "calculated." That is an account that would have a balance of what the sales were for the year.

Margin... profit margin (which is a %) or gross margin (which is the same as gross profit)?

And calculate net income? That's the number at the bottom of an income statement: revenues less expenses. This isn't something you just calculate without doing a statement.

In real life we get sales from doing journal entries, gross margin and net income by doing statements. So for a problem it has to be giving you some type of information and working backwards into these or something. We can't know what that is without that information.