Profit And Loss Statement Paper

875 words - 4 pages

Profit and Loss Statement Paper
Dustin Klusman
March 16, 2013
Sharon Foreman

Profit and Loss Statement Paper
Companies use an income statement to report costs, expenses, revenue, and other incomes over a specified accounting period. This time period is usually quarterly, semi-annually, or annually. Analyzing the information contained within the Kudler Find Foods income statement for the year ending December 31, 2003 will show these different areas within the company. Each section will be analyzed to explain the information presented. The sections of the income statement are as follows
• Revenue
Net Sales
• Cost of Goods Sold
...view middle of the document...

This amount is subtracted from the Net Sales and the Gross Profit (Loss) amount is reached.
Beginning Inventory $467,890
Purchases $3,752,891
Freight In $165,010
Direct Labor $3,769,591
Indirect Expenses $748,539
Less: Ending Inventory $429,090
Cost of Goods Sold $8,474,831
Gross Profit (Loss) = Net Sales – Cost of Goods Sold
$10,769,200 - $8,474,831 = $2,321,369
Gross Profit (Loss) = $2,321,369 (Apollo Group, Inc., 2011)
This final amount show, in this case, the gross profit for the accounting period. If the amount were in a negative it would show a loss for the accounting period.
The expenses section of the income statement is the total expenses for operation. These are the costs of the business doing business (Raiborn, 2010).
Advertising $263,000
Amortization $2,700
Bad Debts $2,300
Bank Charges $19,258
Charitable Contributions $5,000
Bonuses $65,000
System and Network Contract $82,000
Credit Card Fees $125
HR Payroll Outsource $8,500
Depreciation $27,750
Dues and Subscriptions $29,403
Insurance $65,000
Custodial Contract $48,000
Interest $63,768
Maintenance Contract $36,000
Miscellaneous $1,100
Offices Expenses $8,300
Operating Supplies $5,500
Software Licenses $8,200
Permits and Licenses $3,500
Postage $46,000
Professional Fees $32,157
Office Lease $850
Repairs $16,500
Telephone $16,500
Travel $4,500
Utilities $7,900
Vehicle Expenses $11,458
Wages $725,650

Total Expenses $1,652,419
Net Operating Income $668,950 (Apollo Group, Inc., 2011)

This section contains continuous expenses but those expenses may change such as utilities,...

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