Carla sells hot coffee, cider, and tea from a sidewalk cart in new york city. last month she sold $4,000 worth of product. her variable costs during the same time period were $1,000 (buying her beverages in bulk). what is the business’s gross profit and gross profit margin last month?

The gross profit is the income made from the sales overall, taking into account if there is any of these items such as interest, tax and having the net profit calculated. I believe that the answer for this is $3,000 - ($4,000 - $1,000) = $3,000. The gross profit margin would be the percentage of money made, this means deducting expenses from revenue and dividing this number by the profits of the sales, being sure to express the answer as a percentage value, calculation is this; $3,000/$4,000 x 100 = 75%.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

turnover

the amount of money taken by a business in a particular period.