I'm confused by the financial statement. At the top of the template I put the Sales, cost of goods sold and gross profit for the year. then, as I add in the operating expenses my gross profits diminish. I thought the operating expenses were included in the cost of goods sold according to the cost of goods definition. In other words, I thought that the operating expenses brokedown what it cost me to provide the goods and service. It seems as if I'm double charging myself which eats my profits. Can someone help me understand this better. Thanks