Revenue Is Net Sales
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If you sell three items for 100.
Revenue is net sales. Total revenue less the cost of sales returns allowances and discounts. The expected revenue to be gained from the sale of an item or service less the costs of the sale transaction. Retail companies tend to report net sales as well as revenue. The after tax net cash flow for terminating the project.
Net sales are the total revenue generated by the company excluding any sales returns allowances and discounts. Net sales are derived from gross sales and are more important when analyzing the quality of a company s sales. Understanding net sales. The figure is used by analysts when making decisions about the business or company s topline growth.
Most people are familiar with returns. Returns sales allowances and sales discounts. The income statement is the financial report that is primarily used when analyzing a company s revenues revenue growth and operational expenses.
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