Functional Form Of Income Statement

Sales returns and allowances.

Functional form of income statement. Income statement by function is a critical report for the management and board of directors in making right decisions as compared to the income statement by nature where everything is grouped together to calculate the net profit figure. The following example shows the format of an income statement by function of expense. Preparing functional form income statement 03132013 1. Functional form income statement maya trading 3 18 income statement for the year ended notes net sales 1 749 104 00 cost of goods sold 2 467 510 00.

Cost of goods sold. Net sales pxxx cost of sales xxx gross profit pxxx other income xxx distribution. Net sales 0. Functional form income statement.

The use of function method to disclose expenses still requires us to disclose the individual expenses by nature method under each function either on the face of the income statement or in the notes to the income statement. Edit download download. Fillable printable functional form income statement. Income statement name time period financial statements in u s.