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Hi All
I came across financial statements outside of the company’s website. I noticed this site calculated the cost of goods sold. My problem is, when i calculate the cost of good sold using the financial statements on the company’s website> I am not getting the same figure as this website. All other information is the same> Am i missing something?
I am calculating cost of goods sold (opening inventory+purchases-closing inventory).
I’m not sure if i’m allowed to say the different sites, that’s why i’m not mentioning them.
@nicolealleyne – you may use the company’s own figures if they are available as long as you acknowledge this. Just ensure that in your appendices you show how you have constructed your graphs in Excel to fulfil IT requirements.
Sometimes companies add on some direct costs to the inventory figures and/or purchase figure so this may account for your differences. See the article below
https://www.accountingtools.com/questions-and-answers/how-to-calculate-the-cost-of-goods-sold.html
You may like to make a note of this difference if significant unless you know both your main company and the comparator use the same bases otherwise you may not be comparing like with like. Remember however it is the general direction of the trends that are important in your evaluation and what factors have caused them, and in this respect the GP & net profit figures are more important.
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