Hello! I recently started selling clothes as a way to make extra money while in college however I’m a bit confused on the profit made. On a per product basis I’ve made $106.46 however when I calculated the profit by subtracting the overall cost of buying the clothes and how much I made it’s only $17.83.
Picture of Excel sheet for better understanding, https://imgur.com/LOdNo2O
Thank you!!
You must log in or register to comment.
you are mixing account methods for one. on a cash basis you only made 17.83, but you still have inventory to sell. so sure you on a cash basis you are 17.83 ahead, but on an overall basis you still have inventory which is still an asset. it just has not been sold. so you have 17.83 plus the value of the inventory.
you are mixing account methods for one. on a cash basis you only made 17.83, but you still have inventory to sell. so sure you on a cash basis you are 17.83 ahead, but on an overall basis you still have inventory which is still an asset. it just has not been sold. so you have 17.83 plus the value of the inventory.