Forum Discussion
Formula for finilazing resale value of product and to know the profit after Tax dues
Ronald1969 Had seen your question pop-up in another unrelated thread yesterday. Thanks for re-posting it in a new one. The attached workbook may have the formulae you are asking for. I kept your example on the side, so that it was easier to compare your request with the outcome of the formulae.
Ronald1969 Had seen your question pop-up in another unrelated thread yesterday. Thanks for re-posting it in a new one. The attached workbook may have the formulae you are asking for. I kept your example on the side, so that it was easier to compare your request with the outcome of the formulae.
Ronald1969 You are most welcome!
Hi!
I am Sorry, to intercept again on an identical issue, you have already helped me. However, as I am trying to use it practically, I am facing few hurdles. Here I am trying to figure out if is there is any possibility of making the placement of formula in fewer cells. To seek one common answer, can we manage by utilizing fewer cells? This Issue may not be identical, but very closer to my issue in question.
I have attached an excel sheet, for perusal.
Please check, and, if possible, help me to make the working more dynamic or compact.
Regards,
Ronald Pinto
Ronald1969 Not sure I follow the logic of your price setting. You buy for 1000 plus 18% tax. Then you add 5% for profit to the purchase price including tax. And then again 18% tax to arrive at the selling price. Your profit % will then be 18%+(5% x 1.18) = 23.9%. In numbers, 239 profit on 1000.
In my world, taxes on purchases and sales are not part of your cost and revenue and, thus, do not affect profit. In your example, you initially pay tax 180 and you collect tax 223. You end up paying 43 in taxes, but these are not costs for you! Your customer paid the tax, not you. You are just acting as a tax collector for the government.
I tried to demonstrate that in your file in column A and B. Compact enough and dynamic. Just change the parameters in B4:B5, and the rest goes automatic.