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The next line to be subtracted from gross profit would be operating expenses. These are any expenses that supported the companies operations. Operation expenses are different from sales because operating expense canât be directly linked to production of products or goods sold. Depreciation of machines, tools and furniture are also deducted from gross profit...
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Depreciation of machines, tools and furniture are also deducted from gross profit. The cost of depreciation goods are spread over the time period that it is being used called a fraction of the cost. The total after these deductions are called income from operations. After income of operations companies calculate interest income and interest expenses...
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