Income Statement Food Business

The first category is your expenses related to the food and drink you sold.

Income statement food business. If all the expenses are to be met the restaurant should not spend more than 96 000 in food costs. You use an income statement to track revenues and expenses so that you can determine the operating performance of your business over a period of time. Month 1 month 2 month 3 month 4 month 5 month 6. Your income minus your food expenses is your gross profit.

Food costs sales labour overhead profit 247 500 78 750 57 750 15 000. Net income is the final calculation included on the income statement showing how much profit or loss the business generated during the reporting period. Once you ve prepared your income statement you can use the net income figure to start creating your balance sheet. Income statement 12 months january february march april may june july august september october november december period starting.

Income statement for your mobile food business the income statement shows your revenues expenses and profit for a particular period of time. Small business owners use these statements to find out which areas of their business are over or under budget. The next category is your expenses related to your operations. An income statement is one of the most important business financial statements.

On the balance sheet net income appears in the retained earnings line item. At its most basic level a p l reflects costs that are subtracted from sales. The restaurant income statement not only measures income but it is also a great tool for managing the business. Note 1 62 business in action 1 8 shows how the cost flow equation can be used to analyze the effects of fraud that was allegedly committed at rite aid figure 1 7 income statement schedules for custom furniture company a.

It s a snapshot of your business that shows whether your business is profitable at that point in time.