Make your computations correctly:
Gross Profit = Sales - Cost of Goods Sold
Operational Margin = Gross Profit - Fixed Costs (administration, office, salaries..)
Net Profit After Tax = Operation Margin - Interests (on loans) and Taxes
Retained Earnings = Net Profit After Tax - Dividends
Only Retained Earnings remain to start the next operating year !
If Retained Earnings of the next year are bigger than the one of the previous (and you didn't borrow), then you make money.
Rule of thumb, when you start a business, unless you are really sure about your income, divide your planned sales by a factor 3 and your cost of goods sold by a factor 2... and see if the business is still profitable.