Sales revenue is the income received by a company from its sales of goods or the provision of services.
Sales revenue is the first metric reported on an income statement and it represents the starting point for companies to determine their net income.
Formula to calculate sales revenue for goods and merchandise.
Example:
Ina certain year, a tire manufacturing company sold 10 million tires at $80 per piece. Determine the sales revenue of the company.
The company’s sales revenue is $ 800,000,000.
Formula to calculate sales revenue for services delivered.
Example:
A barber shaved 15 people in a day, every customer was charged $2 for the service. Determine the barber’s sales revenue.
The barber’s sales revenue is $30.
