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    tigger24's Avatar
    tigger24 Posts: 1, Reputation: 1
    New Member
     
    #1

    Aug 16, 2009, 01:22 PM
    Net sale
    How do I figure out the net sales revenue when all the information I have is sales discounts sales returns total purchases purchase returns purchase discounts and the beginning and ending inventory and the frieght in
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #2

    Aug 16, 2009, 05:16 PM

    You can't. This looks awfully familiar, like someone else posted this recently. And something is wrong in that information.

    What you can do with that info is figure out cost of goods sold:

    Purchases
    - Purchase Returns
    - Purchase Discounts
    = Net Purchases
    + Freight In
    = Net Total Cost of Purchases

    Then:
    Beginning Inventory
    + Cost of Purchases
    = Available for Sale
    - Ending Inventory
    = Cost of Goods Sold

    This is the basic periodic method for figuring out costs of goods sold.

    However... then that combined with sales stuff:

    Gross Sales
    - Sales Returns
    - Sales Discounts
    = Net Sales
    - Cost of Goods Sold
    = Gross Profit

    You have the returns and discounts. So if you had gross sales, you could figure out net sales. You also can figure out COGS with the info you have. If you had gross profit, you could also figure out net sales. That is, you've got the top half of that and the bottom half of that, either of which can be used to get there.

    But in either case, you only have 1 of 3 numbers you would need. So it's impossible to do.

    Unless of course you have something available that you are not revealing. I've heard about a trillion times that someone doesn't have any more information when they actually do. It might be something you don't consider to be important, but look the problem over and see what else you have.

    As for the rest of this info, you should know it anyway, so be good to learn this stuff even if you can't use it for the moment.

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