Hi all,
I'm doing a Cash Flow Estemate for a business i'm starting, Now I've worked out what I can expect to make, Gross, each month, it's $186,208.00, ($786 per hour incase you're interested) I have a really good supplier and I'm going to be looking at a rough GP of 30% on average, So for the purpose of my CFE I need to work out what my buy price is. There are more than 10 different ways i've come across and each different way gives a different answer; Some are really great for me and some are really horrible. What is the right way to do this? I'm going batty!
Thanks in advance
BigD11213
I'll tell you current one i'm using:
B5= $186,208.00
B6= 30 [representing 30%]
B7= $55,862.40 Formula: =(B5*B6)/100
B8= $130,345.60 Formula: =B5-B7
End Result is $130,345.60
I've also used:
=B5/1.3
End Result is $143,236.92
B6= -30%
=B5*(1+B6%)
End Result is $130,345.60
B6= 30%
=B5/(1+B6%)
End Reusult is $143,236.92
So the common theme here are the 2 different numbers: $130,345.60 and $143,236.92. Which method is right and why please? My business hinges on me getting this right.
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