Gross Profit Calculation

Gross Profit is calculated by subtracting cost of sales from net sales. It can be calculated using the following formula:
Gross profit = Net sales - Cost of goods sold
Net sales (or Net turnover) = Total sales – Sales returns and allowances
Cost of goods sold = Opening stock + Net Purchases - Closing stock

Example 1:
Calculate the gross profit, given the following information:
Sales $78,000
Sales returns $6,000
Opening stock $50,000
Purchases $20,000
Purchases returns $5,000
Closing stock $30,000

Solution:
Net sales = 78,000 - 6,000 = $72,000
Net Purchases = 20,000 - 5,000 = $15,000
Cost of goods sold = 50,000 + 15,000 - 30,000 = $35,000
Gross profit = Net sales - Cost of goods sold = 72,000 - 35,000 = $37,000

Example 2:
CTU Ltd has the following data:
Sales $60,000
Sales returns $20,000
Cost of sales $45,000

Then,
Net sales = 60,000 - 20,000 = $40,000
Gross profit / loss = Net sales - Cost of sales = 40,000 - 45,000 = -$5,000 (loss)

Finance Companies in Bangladesh

Following are some of the major finance companies in Bangladesh:

GSP Finance Company (Bangladesh) Limited - The main focus of the company is on the business of lease financing of capital goods for industries including construction equipment, office equipment, medical equipment, power generators, etc.

IDLC Finance Limited - It is a multi-product financial institution, founded in 1985 with the collaboration of reputed international development agencies such as: Kookmin Bank (South Korea), Korean Development Leasing Corporation (KDLC), International Finance Corporation (IFC) of the World Bank Group, Aga Khan Fund for Economic Development (AKFED), German Investment and Development Company (DEG).

Bangladesh Industrial Finance Company Limited (BIFC) - It is a joint venture Leasing and Financing Company, promoted by a group of' Foreign and Local Sponsors. The company was incorporated as a Public Limited Company in August 1996 and licensed by Bangladesh Bank as a Non-Bank Financial Institution in February 1998.

Delta Brac Housing Finance Corporation Ltd. (DBH) - It is the pioneer, largest and specialist in housing finance institution in the private sector of the country. Among all banks and financial institutions of Bangladesh, only DBH has been given the highest 'AAA' credit rating.