Income Statement PDF
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This document contains examples and formulas related to calculating income statements. It discusses gross profit, net sales, cost of goods sold, and operating expenses. It includes calculations for both simple and complex scenarios.
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PROFIT AND LOSS Example 1 - On May 1, the merchandise inventory of Kesten Tires and Battery Supply was P 165,256.13 and its purchases after that date amounted to P 110,901.45. On July 31, the store inventory was P 98,542.63. How much goods were sold? Beginning Inventory...
PROFIT AND LOSS Example 1 - On May 1, the merchandise inventory of Kesten Tires and Battery Supply was P 165,256.13 and its purchases after that date amounted to P 110,901.45. On July 31, the store inventory was P 98,542.63. How much goods were sold? Beginning Inventory P 165,256.13 Add: Purchase P 100,901.45 Goods for Sale P 276,157.58 Less: Ending Inventory P 98,542.63 Cost of Goods Sold P 177,614.95 Example 2 - The total sales of Kristen Angel Dept. Store during the month of December were P 5,976,418.12. The cost of goods during the month was P 2,324,080.25. The expenses were as follows: salaries and wages P 170,910.83; rent P 350,000; light and water bills P 418,265.34; miscellaneous expenses P 120,450.25; and some of the merchandise amounted to P 1,480,980. Find a. gross profit b. operating expenses c. net profit Gross Sales P 5,976,418.12 Less: Sales Returns 1,480,980.00 Net Sales P 4,495,438.12 Less: Cost of Goods Sold 2,324,080.25 Gross Profit P 2,171,357.87 Less: Operating Expenses Salaries and Wages P 170,910.83 Rent 350,000.00 Light and Wages 418,265.34 Miscellaneous Expenses 120,450.25 1,059,626.42 Net Profit 1,111,731.45
