Transcript Income Statement

Accounting
The Income Statement
The Income Statement Equation:
Sales – Expenses = Profit
(OR...the money you earn MINUS the money you
spend is the money you get to keep)
Profit
Expenses
Sales
Income Statement
(aka Profit and Loss Statement)
Joe Jones Company
Income Statement
January-December, 2003
INCOME
Sales
500,000
100%
(275,000)
55%
225,000
45%
Rent
50,000
10%
Salaries
75,000
15%
Marketing
15,000
3%
Utilities
4,000
1%
Depreciation
1,000
0.2%
Local Taxes
350
0.1%
Licenses & fees
500
0.1%
1,000
0.2%
500
0.1%
147,350
29%
Profit before taxes
77,650
16%
Income tax (25%)
(19,413)
4%
58,238
12%
Cost of Goods Sold
Gross Income
EXPENSES
Legal
Accounting
Total Expenses
Net Income after taxes