I am now going to prepare a profit and loss account and balance sheet for TARTAN
UMBRELLAS Ltd.
Gross profit is the business’ total revenue (also known as total sales) minus the total cost of
goods sold. Gross profit exists because it is the profit a business makes after it deducts the
costs related with producing and selling its products, or the costs related with providing its
services.
Net profit is a business’ amount of money remaining after all the interest, taxes, operating
expenses etc. have been deducted from the total amount of revenue they made. It is
worked out be deducting expenses from total revenue.
UMBRELLAS Ltd.
Gross profit is the business’ total revenue (also known as total sales) minus the total cost of
goods sold. Gross profit exists because it is the profit a business makes after it deducts the
costs related with producing and selling its products, or the costs related with providing its
services.
Net profit is a business’ amount of money remaining after all the interest, taxes, operating
expenses etc. have been deducted from the total amount of revenue they made. It is
worked out be deducting expenses from total revenue.
