Income Statement Formula Grade 10

Cost of sales opening inventory net purchases closing inventory.

Income statement formula grade 10. An income statement is prepared to show the gross profit loss and net profit loss of the business. Enter the figure into the final line item of your income statement. Grade 10 answer book. 55 marks 30 minutes projected income statement you are provided with the projected income statement and additional information relating to helen s hair stylists for the period april to june 2010.

10 post closing trial balance as at 28 february 2015 debit credit balance sheet accounts section. Income statement formula consists of the 3 different formulas in which the first formula states that gross profit of the company is derived by subtracting cost of goods sold from the total revenues second formula states that operating income of the company is derived by subtracting operating expenses from the total gross profit arrived and the last formula states that the net income of the. Gross profit sales cost of. Download case study income statement grade 10 document.

Grade 10 accounting lesson 28 financial statements part 1. There are 2 sections in an income statement. 2 of 14. We know those income statement formulas are key parameters in analyzing the performance of any company but their drawback is that these ratios cannot be compared universally.

Accounting grade 12 session learner notes section b. Income tax computation kaplan financial ltd. Net profit margin 90 913 600 2 942 425 700 100. Net profit margin 3 09 things to remember.

Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. Extract from the income statement as at 28 february 2015 depreciation equipment 600 depreciation vehicle 3 024 net profit for the year 25 790. Add this to the income statement below the pre tax income figure. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business.

To determine your business s net income subtract the income tax from the pre tax income figure. Trading section this section is prepared to show gross profit or gross loss of a business. Chapter 4 income statement and related information 4 5 illustration 4 3 condensed income statement boc hong company income statement for the year ended december 31 2011 net sales 2 972 413 cost of goods sold 1 982 541 gross profit 989 872 selling expenses see note d 453 028.