Understanding Income Statement: Gross Profit

Gross profit is what’s left after subtracting your cost of growing apples (COGS) from the money you made selling them (revenue). For example, if you made $100 selling apples and it cost $40 to grow them, your gross profit is $60. This measure doesn’t count any other expenses yet—it just asks, “After paying for seeds, water, and workers, how much is left from the core apple sales?” It gives you a first glimpse at your orchard’s money-making power before tackling larger business expenses.