Can you explain what is gross profit and how it differ from net profit before and after taxes
Gross Profit =Sales – Cost of goods sold (Cost of goods sold= Opening stock+Purchases+Direct Expenses-Closing Stock)
Net Profit (Before Tax)= Gross Profit- Indirect Expenses
Net Profit (After Tax)= Net Profit Before Tax- Tax
A company’s revenue minus its cost of goods sold. Gross profit is a company’s residual profit after selling a product or service and deducting the cost associated with its production and sale.