We didn't keep track of how many cars we sold and its cost.
I have totals from bank account as Deposits, Payments and Checks paid. Deposits is money from selling cars, Payments and Checks Paid are for buying cars.
Deposit: $600K
Payments: ($400K)
Checks paid: ($100K)
Does this mean, I have gross profit of $100K or loss of $166K (see below)
We also received 1099-K from credit card company for $75K. (we do have cash sales too)
Can I assume this is for Part 3 on Sch C
Beginning Inventory: $36K (from last year Line 41 part 3 Sch C)
Purchases: $500K
Cost of good sold: -$241K
Ending Inventory: $195K (this is guess value)
So, $75K from 1099-K minus -$241K COGS is -$166K? is this correct?
I thought gross profit is sales minus cost. but here it seem it depends on my ending inventory? remember I haven't posted my expenses to run the business like rent, taxes etc
