Just for fun I'l demonstrate why you dont subtract 17.5% from the gross to get a net figure. This is where you went wrong in your example. Using the same figures as my final example:
17.5% of 2.35 = 0.41
2.35 - 0.41 = 1.94
So we can see, even on such a small figure, the result is way off the true figure of 2. Imagine this on figures with 5 digits...
Last edited by accent : 08-01-2007 at 10:24 PM.
Reason: Added sentence.