A Profit and Loss Statement Form or Income Statement is a component of Business Financial Statement Forms that outlines the total revenue and total expenses of a company over a given period of time, usually a fiscal year. From its name itself, it helps a company identify if there were any profit or loss during the given period. This way, the company can assess their profitability or their ability to generate income.
Sample Profit and Loss Statement Form
Example Monthly Profit & Loss Statement Form
Profit and Loss Statement for Homeowners
Free Profit and Loss For Human Services
Parts of a Profit and Loss Statement Form
- Gross Profit: This is calculated by subtracting the cost of goods sold from the net sales. The net sales includes the revenue from products and / or services sold after the deduction of returns, allowances, discounts, and damaged or missing items. The cost of goods sold comprises the cost of direct labor and materials, any overhead expenses that went into manufacturing the products.
- Operating Income: This is calculated by subtracting the operating expenses from the calculated gross profit. Operating expenses are those that go toward administration costs, like the wages of employees that do not directly have anything to do with manufacturing the product. Other expenses included in this bracket are utilities, marketing, insurance, transportation, and depreciation of assets among others. The resulting value, which is the operating income, is the total income of a company from its normal business functions.
- Non-operating Income: This is the deduction of non-operating expenses from non-operating revenues. These are expenses and revenues that do not have anything to do with the normal functions of the business. Common examples are interest from the sale of investments, and losses from lawsuits and interest paid to lenders.
- Net Income: This is the leftover income after all expenses have been deducted. If it is positive, then there is a profit. If it is negative, then there is loss. The net income is then added to the retained earnings of a company, which can be used to invest in business activities. You may also our other Statement Forms like our Witness Statement Form and Statement of Information Form.
Business Profit and Loss Statement Form in Excel
Fundraiser Profit and Loss Statement Form
Self Employment Profit and Loss Statement Form
Schedule C Profit and Loss Statement Form Format
Calculating the net income of your company over a given period of time can allow you to see if you’ve made any profit. This information, along with a cash flow statement, can help you identify areas of improvement for budget cuts to increase your income and decrease expenses. This can be done quarterly and annually for close monitoring, because as a company grows, the revenues grow as well, but the expenses could also be growing at a faster rate. You may also see our Sample Financial Statement Forms for other parts of a Business Financial Statement. This can help you have a more integrated outline of your company’s financial standing.
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