Unformatted text preview: company's historical gross profit percentage to current-period information about net sales and the cost of goods available for sale. Gross profit equals net sales minus the cost of goods sold. The gross profit margin equals gross profit divided by net sales. If a company had net sales of $4,000,000 during the previous year and the cost of goods sold during that year was $2,600,000, then gross profit was $1,400,000 and the gross profit margin was 35%. Net Sales $ 4,000,000 Less: Cost of Goods Sold (2,600,000) Gross Profit $ 1,400,000...
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.
- Fall '10