Total profit, also called gross profit, is calculated by taking the total received from sales and subtracting the cost of the goods sold. It does not include expenditures, such as insurance and taxes. Gross profit is use... More »

To calculate operating profit, subtract operating expenses from gross profit. Also referred to as operating income, operating profit represents the total profits, before taxes, that a business generates from its operatio... More »

Profit on return is calculated by subtracting a unit's selling price from the cost to produce, dividing that difference by the selling price and multiplying that number by 100. This equation gives the percentage margin o... More »

To make a simple profit and loss statement, fill the heading of your worksheet with your company name and the reporting period, then fill in the net sales and subtract the cost of goods sold to calculate the gross margin... More »

To calculate profit and loss, evaluate revenue, cost of goods sold and the expenses incurred, then subtract cost of goods sold and expenses from sales. A positive result denoted profit, while a negative result indicates ... More »

Gross profit is calculated by subtracting the cost of goods sold from sales. Businesses also use these two inputs to calculate gross profit margin, which expresses the relationship between gross sales and cost of goods s... More »

To prepare a profit and loss sheet, start with the total income or revenue of the business or company and subtract the cost of goods or products. This gross profit value must then be subtracted by all the expenses of the... More »