Traditional Format Income Statement Example

Prepare a traditional income statement and a contribution margin income statement.

Traditional format income statement example. Hc company is a us based multi. Its purpose is to arrive at the net amount of sales revenue. Cost of goods sold cost per unit x number of units sold cost of goods sold 48 80 x 8 000. Traditional income statement format bus tu ac th details file format pdf size.

This was due to the income being 5 400 less 100 000 94 600 and the expenses such as water and electricity being greater than expected. Income statement format 1. An alternative format is the contribution margin income statement in which variable expenses are aggregated into what would have been the cost of goods sold block in a traditional income statement. Traditional format income statement example moreover s accountingformanagement org wp content uploads 2014 06 contribution margin equation as well ass accountinginfocus wp content uploads 2015 03 traditional in e statement or.

27 kb download it is a traditional income statement format with several exercises and illustrations. Income statement templates are print ready tools that companies can use to record present and analyze the operation of the businesses for a given period usually one financial year. Cost of goods sold section. The income statement is generally a record of income received and expenses incurred over that period.

In the budgeted income statement example above we can see that the actual profit for the period is about 8 500 less than what was planned for. Example of calculating the cost of goods sold for the traditional income statement using the cost per unit that we calculated previously we can calculate the cost of goods sold by multiplying the cost per unit by the number of units sold. Example 2 multi product company.