Business Plan - Income Statement

In the business world there are two major financial statements worshiped by the great bean counter. These two statements are: the Income Statement and the Balance Sheet.

This assignment's focus will be the Income Statement. Learn to read it and be a good investor, learn to create one and be a good business person, create one and finish this assignment!

The Income Statement presents the proverbial bottom line. By adding all the revenue you receive from selling goods or services and then subtracting the total cost of operating your company, the income statement will show your net profit.


Before proceeding with this assignment, open up your Financial Notebook spreadsheet (in Excel) and make a new worksheet tab for your Income Statement. .

 

Gathering Appropriate Data and Percentages

  • We will be using information provided by BizStats.
  • Most of you will select a category from information on Sole Proprietorships at the bottom of the page. Notice that this is based on a percentage of sales.
  • If the category does not apply, leave it out

To Do:

MONTHLY INCOME STATEMENT
REVENUES XXXXXXXXXXXXXXX XXXXXXXXXXXXXX
     
Sales receipts
?
XXXXXXXXXXXXX
Less - Cost of goods sold
?
XXXXXXXXXXXXX
--Total revenues
XXXXXXXXXXXXXXX
?
 
EXPENSES
 
Employee salaries
?
Commissions
?
Rent
?
Utilities (from other SG and A expense - See Detail)
?
Materials
?
Office Expenses
?
Advertising
?
Professional services
?
Insurance
?
Home Office Expense
?
Depreciation
?
Taxes
?
Maintenance
?
Interest
?
Miscellaneous
?
Other expenses
?
--Total expenses
?
 

Net profit (loss)
?
     

Tips to help you are as follows:

Save your Financial Notebook.