hi how does the opening stock , closing stock and purchase have effect of gross and net profit
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Quick Summary
This discussion explores the relationship between opening stock, closing stock, and purchases, and how they influence gross and net profit. It highlights that adjusting stock levels can impact gross profit, depending on sales volume, pricing, expenses, and unsold inventory. While some corporate reporting might extrapolate profit figures, the core impact of these stock elements on profitability remains significant.
It depends upon how much Openings Stock and purchase during the year you sold and at what price you Sold ,how much expenses you incurred and unsold stock is your Closing Stock ,at the end of the financial year.