Gross Profit Margin

[Tony Shelton]

I may have this wrong but my cost of doing business this year was $104,000. To pay my two guys it cost me close to $60,000. My business net about $250,000. I have tax shelters to protect some of the money. So basically my take was $86,000 which that works against my "other" job which pays me around $135,000. I pay alot of taxes on that job and none on my powerwasher job except for sales tax. So I beat the price down some by putting some money in tax holdings...457k Roth Ira's etc.... Either way I am not making enough money considering I keep my wife home(By her choice since she is the boss)

Is that 104k number based on actual costs or based on IRS reporting allowances including - xx cents per mile, depreciation, etc?

Actual out of pocket costs are usually much less.

This is how one can show a net income of 200k to the bank while showing a net income of 20k to uncle sam and both statments are true.

 

[Lou hoods&more]

Though I am not comfortable posting proprietary information like that, I will say that my gross profit margin is higher than ay others I have seen here, but then I have also been accused of being a low baller.

hahaha.....Couldn't have said it better.

 

[DJ Carroll]

ok i'm taking accounting right now so this is bugging the crap out of me!!!!

Gross is before expenses

Net is after expenses


here are the formulas

Return on Asset : NET income divided by Avg total asset

Debt Ratio: Total Liabilities divided by Total Assets

NET Profit Margin: NET income divided by
NET sales

Gross Margin: NET sales minus COGS divided by NET sales

Acid Test Ratio: Cash+Cash Equivalent + Current Receivables all divided by Current Liabilities!!!

NET profit is what the company has made at the end of ALL expenses this is the number that is rolled over into the retained earnings statement

Gross profit is your profit per job before expenses such as printing, electricity, cell phone and what not

Hope this helps . . .

FYI = I had a negative 3% net profit last year

 

[Ron Musgraves]

Much different now?

 

[DJ Carroll]

Ron just seen this ..... all i have to say is :thumbup:

 

[Ron Musgraves]

Though I am not comfortable posting proprietary information like that, I will say that my gross profit margin is higher than ay others I have seen here, but then I have also been accused of being a low baller.

Will be wanting to hear this from you Scott