HTML Preview Bank Income Statement page number 1.
Income Statement for a Small Business
For period from ________ to _________
Sales
Less cost of goods sold
Opening inventory
Purchases (direct materials)
Factory wages
Total
Less closing inventory
Equals cost of goods sold
Gross profit (or income)
Expenses
Salary (owner)
Wages
Rent or mortgage interest
Utilities (electricity, heat, etc.)
Insurance
Advertising and promotion
Automobile
Other travel
Office expenses
Storage
Maintenance
Depreciation
Bad debts
Interest
Other expenses
Total expenses
Earnings (or loss) Before Taxes
Income taxes
Net Earnings (or loss)
Use this worksheet to prepare your Income Statement if you are already in business, and as a
format for pro forma (projected) income statements.
Gross profit (or income) is obtained by deducting the cost of goods sold from sales.
Net earnings (or profit) or loss is obtained by deducting all expenses from the gross profit.
Net earnings is the amount to be transferred to the retained earnings section of the balance sheet.