What is the Gross Profit Margin as it relates to Financial Statements ?
The gross profit on inventory is divided by the average profit of the inventory. Low end items may be marked up 500% while a high end is only 30%. Use the average profit across all inventory items. If the average is 10, which means for every dollar you invested, you earned $10 more in profit.
Need Professional Help?
If you need help with "Financial Statements" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.