Income Statement For Retail Business

The income statement is an accounting tool that reports a company s financial performance over a specific period providing a summary of the business s revenues and expenses from operations and non operational activity.

Income statement for retail business. Income statement for the seven months ending july 31 2015 the income statement is also known as the statement of operations profit and loss statement and p l income statement. Net income net loss write your own. You can easily make this income statement for your retail business too if you just make use of this basic statement template. An income statement also called a profit and loss statement lists a business s revenues expenses and overall profit or loss for a specific period of time.

Cost of goods sold step 4. Gross profit amount step 5. An income statement summarizes your revenue and costs and shows your net profit in your business plan. The income statement the other essential part of your financial statement has a variety of names.

Press each of the six steps to learn how to prepare an income statement for a retail business. No matter what you call it it summarizes activity over a period of time usually one to 12 months. Below you ll find a sample income statement for xyz retailers. The top entry on the income statement is sales.

An income statement reports the following line items. Statement heading step 2. Take a look at how a gift shop called broad street emporium uses income statements to manage business finances. This information is useful when they are deciding if the company is doing well or not as well as deciding whether to invest keep or sell the investments the particular investor has in the business.

Here is an income statement for the business heels with soles. A retail income statement is created to show what profits the business has made and the losses that have been incurred during the fiscal year. The income statement is a very useful document for the investors of the small retail business if it has any yet because it allows them to look at the revenues and expenses of the business. Retail wholesale filled in form.

Operating expenses step 6. The income statement operating statement profit and loss statement p l. The figure shows the company s annual revenues costs and profits for the most recent year as well as for the previous year.