INCOME STATEMENT
An Income Statement is also know as profit and loss statement (P&L), earnings statement, statement of financial performance, statement of operations and operating statement.
The income/earnings statement is a written financial report that indicates the company's money received during a certain period of time (usually a fiscal quarter or a year, but it can be from a single day to several years), also its costs and expenses incurred during that period.
The result of this income minus expenses is known as BOTTOM LINE or NET INCOME.
A profit and loss statement is an important tool to determine the financial health of a company and for individuals with large amounts of money invested in the company to monitor its performance and unusual expenditures.
The company or small business statement of income should:
SAMPLE INCOME STATEMENT
Date ___/___/___
Total Sales (excluding sales taxes) - Month:______________________________________
or for dates submitted between ____________________ and ________________________
Cost of goods sold..........................................(________________)
Services .......................................................(________________)
Interest returns on investments......................(________________)
Rent revenues...............................................(________________)
Other ...........................................................(________________)
Gross Profit..............................................................................(________________)
EXPENSES
Income/Earnings Statement Operating Expenses:
Salaries .......................................................(________________)
Payroll Taxes.................................................(________________)
Advertising and promotion..............................(________________)
Auto and Travel.............................................(________________)
Supplies........................................................(________________)
Telephone and Utilities....................................(________________)
Entertainment................................................(________________)
Legal Services................................................(________________)
Other............................................................(________________)
Total Operating Expenses............................................................(________________)
Income/Earnings Statement Fixed Expenses
Depreciation..................................................(________________)
Write-offs......................................................(________________)
Insurance......................................................(________________)
Rent..............................................................(________________)
Total Fixed Expenses..................................................................(________________)
TOTAL Expenses........................................................................(________________)
Income/Earnings Statement NET PROFIT (Before taxes & partner draw) ..(_____________)
WHAT IS A CASH FLOW STATEMENT?
A Cash Flow Statement or Funds Flow Statement is a document that provides information about a company’s cash inflows (where that money comes from) and outflows (how a company spends its money) over a specified period of time. It is a resource for testing a company’s liquidity when the Statement of Income shows the company’s profitability.
Net Income
- + Depreciation expense
- + Losses
- - Gains
- - Increases in current assets
- + Decreases in current assets
- + Increases in current liabilities
- - Decreases in current liabilities
- = Cash flows from operating activities
Return from Income Statement to Home page.
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