Simple income statement

Here I am giving very simple income statement which can used even an unperfessional person for calculating the income of business

Sales (Net ) XXXX

Less cost of goods sold XXXX

( or merchandising cost) XXXX

______________________________

Gross profit XXXX

Less operating expenses XXXX

1. office and administrative expenses


2. selling and distribution expenses


3. Financial expenses

_______________________________

Net Income XXXX

________________________________

Net sales refer to total sales less sales returns and are calculated as follows

Cash sales XXXX

credit sales XXXX

__________________________

total sales XXXX

less sales return XXXX

___________________________

Net sales

___________________________

Cost of goods sold means the cost price or cost of manufacture of the goods or commodities actually sold and is calculated as follows.

Opening stock                                       XXXX
add purchase less purchase returns   XXXX
add direct expenses                             XXXX
less closing stock                                 XXXX
________________________________
cost of goods sold                               XXXX
_________________________________