Zim
Could somebody please explain to me how a company can
have 'gross profits' and net losses at the same time?
Beldin can likely 'splain this better than me, but let me give it a try.
The gross profits are just that: gross profits. They are merely what the difference was between direct sales and direct costs incurred.
They do not reflect such things as administration payrolls or payroll taxes, and other items so while you may have a gross profit, you could well have a net loss on your Profit and loss Statement.
Accounting is an interesting field of study and I took three years of it.
WHEN I was looking for decades at my financial statements I concerned myself with operating expenses, raw materials costs, maintenance costs, revenues, and lastly, administrative costs.
By actually understanding how these things interact one can get a better picture of what is going on within the company.
After taxes, NET EARNINGS is the real number you want to know... THAT is your net profit or Loss.
Yes sir, it can be confusing.... Hope this helps even just a teeny bit.....
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