Академический Документы
Профессиональный Документы
Культура Документы
A company may elect to present its gross sales, deductions, and net
sales information on separate lines within its income statement .
However, doing so takes up a considerable amount of space, so it is
much more common to see a net sales presentation, where the
gross sales and deduction amounts are aggregated into a single net
sales line item.
Gross sales can be a misleading figure when reported as a single
line item, separate from the remainder of the income statement,
since it may considerably overstate the amount of sales, and
readers will have no way of knowing the amount of the various sales
deductions. Thus, if sales are to be reported separately from the
income statement, the amount should be reported as net sales.
The difference between gross sales and net sales can be of interest
to an analyst, especially when tracked on a trend line. If the
difference between the two figures is gradually increasing over time,
it can indicate quality problems with products that are generating
unusually large sales returns and allowances.