acct209.com Formula Sheet
| Revenues |
| – Expenses |
| Net Income |
| Sales |
| – COGS |
| Gross Profit |
| – Operating Expenses |
| Total Income From Operations |
| – Non-Operating Expenses |
| Income Before Taxes |
| – Tax Expense |
| Net Income |
| (This is the Multi-Step Income statement) |
| Profit Margin = Net Income / Sales Revenue |
| Sales |
| – COGS |
| Gross Profit |
| Gross Profit Margin = Gross Profit / Sales Revenue |
| Gross Profit Ratio is the same as Gross Profit Margin |
| Beginning Inventory |
| + Net Purchases |
| – Ending Inventory |
| COGS |
| Beginning Inventory |
| + Net Purchases |
| – COGS |
| Ending Inventory |
| Beginning Inventory |
| + Net Purchases |
| Goods Available for Sale (Some professors care about this... some don't) |
| Sales Revenue |
| – Sales Returns and Allowances |
| – Sales Discounts |
| Net Sales |
| Purchases |
| – Purchase Returns and Allowances |
| – Purchase Discounts |
| Net Purchases |
| + Transportation In |
| Cost of Goods Purchased |