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How do you figure annual sales?

Updated: 8/20/2019
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10y ago

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You can figure annual sales in various ways. The easiest way is by adding the opening stock to the purchases. You should them subtract the closing stock for the year and you will get the annual sales.

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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


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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


How do you work out the net?

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


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