The following example shows some of the common elements of the Income Statement (also known as a Profit and Loss Statement).
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Sample Company Income Statement January 1, xxxx to December 31, xxxx |
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| 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 | |
