Term
| Gross Profit Percentage (Gross Margin Percentage) |
|
Definition
| It tells us how much gross profit is generated for each dollar of sales? (if it is .43, that's $0.43 for a dollar of sale..................Gross Profit (which is Sales - Cost of Goods sold) / Net Sales Revenue (is this net income?) |
|
|
Term
|
Definition
| Shows us how many times the company sold its average level of inventory during the year................................Cost of goods sold / Average Inventory |
|
|
Term
|
Definition
| Beginning Inventory + purchases = goods available.....goods availble - ending inventory = Cost of goods sold. |
|
|
Term
|
Definition
| Beginning Inventory + purchases = goods available.........goods available - cost of goods sold = ending inventory. |
|
|
Term
|
Definition
| Sales - cost of goods sold = gross profit......gross profit - expenses |
|
|
