| Typical Income Statement for a small Company |
| Gross Sales |
|
|
|
$98,500 |
| Cash Discounts |
|
|
|
2,000 |
| Net Sales |
|
|
|
$96,500.00 |
| |
|
|
|
|
| Less Cost of goods sold: |
|
|
|
|
| Beggining inventory |
$10,000 |
|
|
|
| Plus: net purchases |
25,000 |
|
|
|
| Total |
$35,000 |
|
|
|
Less: Ending inventory
|
8,000 |
|
|
|
| Cost of goods sold |
$27,000 |
|
|
|
| |
|
|
|
27,000 |
| Gross Income |
|
|
|
$69,500 |
| |
|
|
|
|
| Less operating expenses: |
|
|
|
|
| Bank charges and interest |
$1,200 |
|
|
|
| Owner's salary |
15,000 |
|
|
|
| Employee's wages |
30,000 |
|
|
|
| Rent |
5,000 |
|
|
|
| Utilities (heat, light, water, power) |
5,000 |
|
|
|
| supplies |
1,000 |
|
|
|
| repairs and maintenance |
500 |
|
|
|
| advertising |
2,000 |
|
|
|
| delivery expenses |
500 |
|
|
|
| taxes and licenses |
500 |
|
|
|
| depreciation |
3,600 |
|
|
|
| bad debts |
200 |
|
|
|
| miscelleneous expenses |
1,000 |
|
|
|
| Total Operating Expenses |
$65,500 |
|
|
$65,500 |
| |
|
|
|
|
| Net Operating Income |
|
|
|
4,400 |
| Income Tax (estimated) |
|
|
|
800 |
| Net income after income tax |
|
|
|
$3,200 |
| |
|
|
|
|
| |
|
|
|
|
TOTAL LIABILITIES AND
OWNER'S EQUITY |
|
|
|
$64,500.00 |
