Sales Revenues Less The Cost of Goods Sold
Sales Reve nues Less the Cost of Goods Sold / Cost of Sales is equal to Gross Profit or Gross Income or Gross Loss. Mathematically, we can write as shown below: Gross Profit / Gross Loss = Sales - Cost of Sales This equation is used to calculate Gross Profit or Gross Loss on Income Statement or Trading Account . If Cost of Goods Sold is more than Sales , then there is Gross Loss and the business is facing the loss during the accounting cycle.