Comment 39409

By grassroots are the way forward (registered) | Posted April 02, 2010 at 00:42:10

Zippo:

Cost of goods sold: beg inventory plus purchases less ending inventory equals cost of goods sold

Income statement

Sales

less: costs of goods sold

equals gross profit from sales

less: operating expenses

equals income or loss from operations

less: another other expenses-admin

equals net income (taxable) or net loss

less taxes equals net income or loss, which is then put into retained earnings

Items such as mortgages and taxes are liabilities, not always expensed , exceptions would be items such as CPP and EI, the employer portion is expensed, same as WSIB.

Now with other venues operating from the same location, one would have to allocate a certain percent of different costs to each venture.

I hope this helps.

Comment edited by grassroots are the way forward on 2010-04-01 23:42:52

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