Sample Income Statement For Retail Business

An income statement shows a business s financial performance including income and expenses over a particular accounting period typically occurring monthly quarterly or annually.

Sample income statement for retail business. Example of a retail store cash flow statement. Cash is critical to the success of any retail store. Sample retailer company 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. He is the author of three books on retail sales and has nearly three decades of experience.

Learn how to prepare financial statements for your small business. Matthew hudson wrote about retail for the balance small business. An income statement summarizes your revenue and costs and shows your net profit in your business plan. The income statement is prepared first because the net income or loss is calculated on this statement and is used on the statement of owner s equity.

Take a look at how a gift shop called broad street emporium uses income statements to manage business finances. The information in a financial statement comes in two parts. Without it a retailer does not have the funds to purchase more inventory hire workers or pay the rent and overhead on the store. An income statement otherwise known as a profit and loss statement is a summary of a company s profit or loss during any one given period of time such as a month three months or one year.

What does the income statement report. A sample balance sheet and income statement show the relationship between the two reports. It reflects various aspects of the health and strength of a business by listing its assets liabilities and net worth also referred to as equity. 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.

The balance sheet is a picture of the company at a specific moment in time. The figure shows the company s annual revenues costs and profits for the most recent year as well as for the previous year. Below you ll find a sample income statement for xyz retailers. Finding and using such a sample income statement is an important part of business planning and one that every business owner should take a good look at.

The balance sheet and the income statement. By examining a sample balance sheet and income.