What Are Net Sales? – Formulas, Calculations, And Examples
As a business owner, one of the vital parts of your income statement is the net sales. It’s the basis on which you determine your net profit or net loss, as it accounts for your company’s total revenue within a given period.
A healthy income statement will help you make proper financial decisions, whether you run a brick-and-mortar or an eCommerce store. So, with net sales, you can understand the financial state of your business, as well, as areas that need adjustment.
Income statement
This article explains the concept of net sales, the calculations involved, and a few examples to help you apply the same principles in your business. Additionally, it also reveals the differences between net sales, gross sales, and net income, as well, as the areas where net sales cannot be applied.
Net sales formula