What is the method used to calculate gross dollars from a net figure?

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To calculate gross dollars from a net figure when the net figure represents 85% of the total (gross), the appropriate method is to divide by 0.85. This is because the net amount is often determined after deductions or taxes have been accounted for, and in this case, it implies that the gross amount has been reduced to 85% of the original.

When you divide by 0.85, you effectively reverse the percentage reduction, allowing you to find the gross value before the deductions were applied. For example, if you have a net income figure that is known to be 85% of gross income, dividing that net amount by 0.85 gives you the original gross amount prior to any reductions.

This mathematical approach is applicable in various financial scenarios, particularly in accounting or taxation, where understanding the difference between net and gross figures is crucial for accurate reporting and analysis.

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