It's business time.

It's that time of the week...for another Business Math Adventure!

Tomorrow will be our third meeting for the semester and I'm quite curious as to what new things Sir Paner will teach us.

In my last post, I told you all about the profit and loss (it was the topic for our first lesson).
This post aims to inform so here it goes:

Profit is the amount by which the sales are greater than the cost of goods sold and the operating expenses. Margin also means gain or profit.
Gross sales is the actual amount received for selling the goods.
Net sales is obtained when refunds are being deduced from the gross sales.
Refunds is the amount returned usually if goods are defective
Costs of goods sold is the amount paid for articles bought including the buying expenses
Operating expenses a.k.a overhead is the selling expenses such as salaries or wages, traveling expenses.

The Paint Doctor taught us the formula on how to compute for net sales, gross profit, and the net profit.
The formula goes like this:
Gross sales
less
Sales returns and allowances
will give you the Net sales!
Now, net sales
less
Costs of good sold
will give you the Gross profit!
Lastly, gross profit
less
Operating expenses
will give you the Net profit!

It's super easy!
That will be all, for now. I don't want to bombard you with too much information.
Thank you for reading.
'Til my next post!

Izza

P.S. If you want to know more about our inspiring professor, visit the following links:

http://crispaner.blogspot.com/

http://www.youtube.com/watch?v=JmOWKyzryGk

P.P.S. This blog is checked by: Sir Cris Paner.