I have been operating an online clothing store (single member LLC). I am filing my taxes using the cash method. I have yet to make a profit (after shipping costs and advertising are deducted). For Part 1 of schedule C, do I enter my sales profit (after subtracting the cost of my merchandise) or should I be entering my total sales before the cost of the merchandise is deducted. For example, if I have made $8000 in sales but after the cost of merchandise is subtracted my profit is $4000. Which number would I enter into Part 1 of the schedule c? Hope my question isn't too confusing. Thank you for your help!
