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4. What is the difference between gross profit and net
profit?
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Answer Posted / r v indiresh
Total sales revenue i.e., Gross Sales less Excise duty (if
any) is the Net Sales.
Net Sales less operating expenses(before interest) is the
Operating Profit before interest.
Operating Profit less Interest is Operating Profit after
interest.
Operating Profit after interest less selling & General
Administration Expenses is the GROSS PROFIT.
Gross Profit plus Non-Operating Income and less
Non-Operating Expenses is Net Profit before tax.
Net Profit less Income Tax is Net Profit after Tax.
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