Income Statement Example

The following example shows some of the common elements of the Income Statement (also known as a Profit and Loss Statement).


Sample Company
Income Statement
January 1, xxxx to December 31, xxxx
Income    
Gross Sales 346,400  
 Less returns and allowances 1,000  
  Net Sales   345,400
 
Cost of Goods  
 Merchandise Inventory, January 1 160,000  
 Purchases 90,000  
 Freight Charges   2,000  
 Total Merchandise Handled 252,000  
 
 Less Inventory, December 31 100,000  
  Cost of Goods Sold   152,000
  Gross Profit   193,400
 
Interest Income  500  
Total Income 193,900
 
Expenses    
Salaries 68,250  
Utilities 5,800  
Rent 23,000  
Office Supplies 2,250  
Insurance 3,900  
Advertising 8,650  
Telephone 2,700  
Travel and Entertainment 2,550  
Dues & Subscriptions 1,100  
Interest Paid 2,140  
Repairs & Maintenance 1,250  
Taxes & Licenses 11,700  
Total Expenses 133,290
 
Net Income $60,110