Question

In: Accounting

example of Reporting Net vs. Gross Revenue"

example of Reporting Net vs. Gross Revenue"

Solutions

Expert Solution

gross revenue reporting

when gross revenue is recorded,all income from a sale is accounted for on the income statement.there is no consideration for any expenditures from any source.gross revenue reporting seperates the sales and cost of goods sold.for example if a cricket bat maker sold a bat for $100, even though the bat cost $40 to make.

gross sales $100

cost of goods sold $40

gross profit $60

net revenue reporting

net revenue reporting only listr what's left on the bottom line, calculated by substracting the cost of goods sold from gross revenue . for the same cricket bat maker the net revenue for the $100 bat he sold,which cost $40 to make, would be $60.from that $60, he would deduct any other costs such as rent,wages for other staff,packaging and so on.anything that comes as a cost to the cricket bat maker would be deducted from the net revenue $100

net sales $100

costs of goods sold $40

wages and salaries $15

rent $5

net profit $40


Related Solutions

How to explain and classify income statement revenue, gross profit, and net income?
How to explain and classify income statement revenue, gross profit, and net income?
Law of Supply and Demand Microeconomics vs. Macroeconomics Gross Domestic Product (GDP) definition and example.
Law of Supply and Demand Microeconomics vs. Macroeconomics Gross Domestic Product (GDP) definition and example.
Gross profit $ and gross profit % for Walgreens Gross profit for 2018 = Revenue –...
Gross profit $ and gross profit % for Walgreens Gross profit for 2018 = Revenue – Cost of Goods Sold = 131,537 – 100,745 = $30,792 Gross profit % for 2018 = Gross profit / total sales * 100 = $30,792 / $131,537 *100 = 23.41% Gross profit for 2017 = 118,214 – 89,052 = $29,162 Gross profit % for 2017 = $29,162 / $118,214 *100 = 24,67% Gross profit for 2016 = 117,351 – 87,477 = $29,874 Gross profit...
compare between the revenue and margin performance, How have gross margin, operating margin, and net income...
compare between the revenue and margin performance, How have gross margin, operating margin, and net income developed in relation to the fluctuations in revenue? for both companies 1) Auto Wash Bot Ltd. Income Statement For the Year Ended December 31, 2015 Revenue $375,000 Cost of Goods Sold 86,250 Gross Profit 288,750 Other Expenses Advertising 35,400 Office Expense 22,750 Research 195,000 Wages and Salaries 40,000 Total Other Expenses 293,150 Income Before Taxes (4,400) Income Tax 0 Net Income $(4,400) 2) Popeye’s...
Financial Reporting vs Managerial Reporting.    The text mentions the differences between financial reporting and managerial...
Financial Reporting vs Managerial Reporting.    The text mentions the differences between financial reporting and managerial reporting. What specific uses for financial reports and managerial reports have you seen? Identify any company that you know of that would be a ultra-user of managerial reporting.
is net sales= net revenue? term sales and revenue are same? is Net sales and cost...
is net sales= net revenue? term sales and revenue are same? is Net sales and cost of goods sold same?
1. In 2019, a year in which the firm’s revenue increased, the firm’s gross margin (gross...
1. In 2019, a year in which the firm’s revenue increased, the firm’s gross margin (gross profits/revenue) also increased but the firm’s operating margin (operating profit/revenue) decreased. What does this imply regarding the performance of the firm in 2019? 2. Your friend Bob won the lottery. Four months from today he will start receiving his first annual payments and these payments will continue forever. His first payment will be $100,000 and these annual payments will grow at 2%/year. If we...
What are the new reporting and disclosure requirements for revenue recognition? Why is revenue recognition a...
What are the new reporting and disclosure requirements for revenue recognition? Why is revenue recognition a Big Deal?
Explain the terms gross lease, net lease, double-net lease, and triple-net lease.
Explain the terms gross lease, net lease, double-net lease, and triple-net lease.
Profit and Loss Statement 2018 Revenue 34,290 percent of growth 0.0% Gross Profit 34,290 Gross Margin...
Profit and Loss Statement 2018 Revenue 34,290 percent of growth 0.0% Gross Profit 34,290 Gross Margin 100% SGA Costs (2,500) EBITDA 31,790 EBITDA Margin 92.7% Depreciation (7,500) % of Sales -21.9% EBIT 24,290 EBIT Margin 70.8% Interest (2,500) % of Sales -7.3% EBIT 21,790 EBIT Margin 63.5% Net Income 21,790 Net Income Margin 63.5% Balance Sheet 2017 2018 Cash 9,000 12,000 Inventory 0 0 A/R    0 3,179 Current Assets    9,000 15,179 Fixed Assets 747,300 763,800 Total Assets   ...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT