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    Comfort Ansah's Avatar
    Comfort Ansah Posts: 1, Reputation: 1
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    #1

    May 21, 2015, 01:30 AM
    Gross profit and net profit
    How do I calculate the gross profit and net profit from the trial balance
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    May 21, 2015, 09:30 AM
    Your question is requiring you to do an income statement, so you need to determine which accounts on the trial balance are income statement accounts.

    For gross profit you take your sales minus sales returns & allowances to get net sales then subtract your cost of goods sold.

    For net profit simply take your gross profit minus your expenses to get net profit.

    Use a sample income statement in your textbook for the format and types of accounts.

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