Anyone good at accounting?

Not at all, but that hasn’t stopped me from running two businesses into the ground, so hit me up.

running 2 businesses into the ground?

Whatever you do, don’t look at this question. You’ll lose all faith in mathematics… or you’ll learn how to work books for the mob.

@Rob; that is like saying, “Don’t put beans in your ears while I am out.”

I don’t know if I am “good” at accounting but I have somehow managed to make a living at it since 1977.

Could you please give me a more concrete example of what you need? Are you a student or are you learning accounting on the fly due to job requirements?

I would be glad to help but it might take a few days…

SRM

im a student who has no interest in accounting at ALL. but according to my business oriented university, i need it.

heres my problem.

we are mainly working with journalizing
so all this work is by hand.

perpetual inventory systems:
(aka the devil)

Sales
$71,200

Cost of Goods Sold
$

Gross Profit
$39,000

Operating Expenses
$

Net Income
$10,800

how do i find the missing numbers using the given data?

You got me curious. I’m no accountant, but I like playing with numbers.

Would it be Sales – Gross Profit = Cost of Goods Sold?
71,200 – 39,000 = 32,200

Then Gross Profit – Net Income = Operating Expenses.
39,000 – 10,800 = 28,200

I very well may be wrong. I thought I’d venture a guess before SRM weighs back in.

@Trustinglife

Perfect, although I could swear I answered this question but I don’t see it posted..
Odd
SRM

whats the difference between gross profit and net income?

@jividemin

In numerical terms or in conceptual terms?

Your example frankly is just not the way an income statement, even a simple one, is calculated. The numerical answer is as Trustinglife so ably shows us, is $ 28,200.

In the real world you would not have your gross profit amount without first calculating cost of goods sold. It should go Sales less cost of goods sold =gross profit and not the way it is shown in your example. Cost of goods sold is simply the accounting value or historical cost of the items you sell, most likely, at a profit. Cost can be simple, as what you paid for an item for resale plus freight and/or cost of importation or complex like a machine with 16,000 parts.

Similarly, you determine your operating expenses like payroll, payroll taxes, fringe benefits, commissions, 401k, rent, telephone, IT repairs, legal, travel, etc, etc.

When that amount is calculated by summing the relevant accounts from the general ledger or subsidiary ledgers, you have operating expenses. Operating expenses are deducted from gross profit to determine pre-tax income, not net income as in your example..

This seems to be an odd way to teach accounting. Where do you attend school?

SRM

northwood university