If the purchase is online or by catalog you are subject only to tax from you're state. If your organization has a 501(c)3 status you may give the purchasing company your tax exempt ID number if they require it.
As sales tax is a state institution unless that state has an agreement with another state they cannot charge sales tax on purchases made by another state. If you are in New York and you wish to make a purchase you need to provide your exemption number to the store for their records.
If you have any doubt you can always contact the State in questions Tax Department and they can answer your questions.
gross profit divided by sales Sales = 250000 Cost = 100000 gross profit = 150000 150000 / 250000 = 60%
To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit. Or you get the gross profit by adding your opening stock at the beginning of the year & your annual purchases , deduct your closing stock from this figure & subtract the resulting figure from your annual sales. In simple words, GROSS PROFIT = SALES less COST OF SALES. (Cost of Sales covers all costs related directly to Sales) NET PROFIT = TOTAL EXPENSES less TOTAL REVENUE
To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit. we get the gross profit by adding your opening stock at the beginning of the year & your annual purchases , deduct your closing stock from this figure & subtract the resulting figure from your annual sales. In simple words, GROSS PROFIT = SALES less COST OF SALES. (Cost of Sales covers all costs related directly to Sales) NET PROFIT = TOTAL EXPENSES less TOTAL REVENUE
Cost of good by sales can b calculated by many diffrent ways first you see whats given in question. 1)If only sales and gross profit is given then (sales-gross profit) formula wil be applicable and the net figure wil be cost of goods sold. 2)If purchases,opening stock,closing stock and direct expenses are given then (opening stock purchases direct expenses-closing stock) net figure is cost of goods sold. 3)If only sales and %tage of profit is given (a)on sales then profit is calculated and is deducted from sales which gives cost of goods sold (b)on COGS then if 1/4 th is profit on COGS then it is assumed that it will be 1/5 th on sales n similarly if 1/3th on COGS it will be 1/4th on sales and after calculating profit it is deducted from sales and net figure is COGS.
To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit. Or you get the gross profit by adding your opening stock at the beginning of the year & your annual purchases , deduct your closing stock from this figure & subtract the resulting figure from your annual sales. In simple words, GROSS PROFIT = SALES less COST OF SALES. (Cost of Sales covers all costs related directly to Sales) NET PROFIT = TOTAL EXPENSES less TOTAL REVENUE
To keep records of the sales and purchases made by a business as well as it capitals. And to find out if the business is making a profit or loss.
VAT is accounted for in the Balance Sheet if you have the right to claim VAT on purchases and liability to pay VAT on sales respectively i.e. if you are VAT registered. VAT on purchases is accounted for in the Profit and Loss (purchases are entered gross i.e inclusive of VAT) if you have no right to claim it i.e. if you are not VAT registered.
GROSS PROFIT = SALES - [OPENING STOCK + PURCHASES + DIRECT EXPENSES - CLOSING STOCK]... substitute if u have all the other values
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
Profit divided by sales is profit per item.
It means that 60% of sales and purchases are done on cash basis while 40% of purchases and sales are done on credit basis.
Its COST OF GOODS SOLD (COGS) or simply Cost of Sales (COS). This number once deducted from Sales gives you Gross Profit.