How to calculate predicted y-value in stocks by using high open closing values?
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If you buy and sell stock items, it’s important that you know how profitable they are so you know how your business is performing. The value of your sales and purchases appear on your Profit and Loss Report. However, to correctly calculate the profitability of your stock items, you also need to take into account any unsold stock at the end of any given period. If you don’t include your unsold stock, this can create an inflated profit or even a loss on your report. You can ensure unsold stock is included by posting opening and closing stock journals.
By default, the Profit and Loss Report calculates the gross profit as:
Sales – purchases = gross profit
However, if you post opening and closing stock journals, the gross profit calculates as follows:
Opening stock + purchases – closing stock = cost of sales
Sales – cost of sales = gross profit
By default, the Profit and Loss Report calculates the gross profit as:
Sales – purchases = gross profit
However, if you post opening and closing stock journals, the gross profit calculates as follows:
Opening stock + purchases – closing stock = cost of sales
Sales – cost of sales = gross profit
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