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Date Posted: 05:07:35 09/11/01 Tue
Author: Pete DaDalt
Subject: Re: Profits
In reply to: Christy Hall 's message, "Profits" on 15:19:03 09/10/01 Mon

>I've had a momentary lapse of sanity...what's the
>equation for profit?

A: It depends on what type of profit. Suuiming you want an "Income Statement" answer, Gross Profit is sales revenue less cost of goods sold. Subtract Operating Expenses from Gross Profit and you get Operating Profit. Subtract Interest and Taxes from O.P. and you get Net Income (also called Net Profit).

However, you can also get Net Income (i.e. Net Profit) by multiplying Net Profit Margin times Net Sales.

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