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sales which shows a negative net income. However we have been improving and getting close to
breaking even. For example November our total sales were $8,487.91 while our expenses were
$50,639.76. This is a Net Income of a loss of 47,012.32. However in December our sales
improved to a total of $35,285.30, which is a tremendous increase in sales. Our total expenses for
December were $45,256.05 and led to a Net Loss of 9,970.75. This is still not good as we are in
the negatives but we are improving as the days go on. This can also be shown by our ratios. For
example the gross profit ratio indicates the percent gross profit of sales, and a lower percentage
most likely indicates a cost of merchandise sold. In November we had a gross profit margin of
0.46, while in December we had a gross profit margin of 0.94. This shows that we have had a
lower cost of merchandise sold in December than in November. Another ratio that shows this is
the net profit margin. This ratio indicates the percent net profit is of sales. A low percentage most
likely indicates high costs. Our net profit margin for November was -5.5 while in December it
was -0.35. This shows that we were much more efficient in our spending and we made a lot more
sales in December than in November. As a result of this increase in sales we have been able to
pay off all our liabilities. This is a huge relief to Well Grounded because we do not have to worry
about paying back money we owe and can't focus on spending money on our inventory and other
routine expenses.