3 ms·

how could taxes be only 27k over 1782k in gross profit? That seems absurd to me. Not implying that you're wrong, just.. how does this work?

• mikeyouse 5y ago
  That 'Gross Profit' seems to be Revenue minus Cost of Goods Sold (e.g. the food / packaging). Income taxes are calculated based on your total Earnings -- so Gross Profit minus all of the other expenses that it costs to run the business like tptacek's summary spells out (payroll, rent, capital depreciation, insurance, accounting, etc etc). https://divergentview.com/investment_guide/gross-profit/ https://divergentview.com/investment_guide/gross-profit/
• deleted 5y ago
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• pazx 5y ago
  Taxes are calculated using net profit which is 153k. Gross profit = sales - cost of goods Net profit = sales - all costs
  • deleted 5y ago
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