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net sales

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Financial Dictionary

Net Sales

The amount a seller receives from the buyer after costs associated with the sale are deducted.

Investopedia Commentary

This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight out, and any cash discounts allowed.

Related Links

Introduction to Fundamental Analysis
Great Expectations: Forecasting Sales Growth
Doing More With Less: The Sales-Per-Employee Ratio
Advanced Financial Statement Analysis

See also: Cost and Freight - CFR, Cost of Goods Sold - COGS, Credit, Operating Income, Operating Margin

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Financial Dictionary

net sales

Gross sales for a period after cash discounts, returns, and freight expenses have been deducted. Compare gross sales.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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