Income statement

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1. Second Heading no figure; followed by....

  • Less: Cost of sales; Opening Inventory; Add purchases; Less: Closing inventory; Gross profit
  • Sales; Less: Cost of sales; Add purchases; Less: Closing inventory
  • Sales; Less: Cost of sales; Opening Inventory; Trade recievables; Less: Closing inventory
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2. Advising how amount charged for loan and bank interest could be reduced

  • Arrange loan instead of over draft; incerase sales; reduce drawings; new loan or O/D at lower rate
  • Increases cost of sales; decreases gross & net profit:reduces assets in balance sheet

3. Totals:

  • Gross profit after Sales and Cost of sales & Net profit at the end
  • Gross profit; Total sales: Net profit

4. Final result:

  • Net profit
  • Total sales
  • Total Income
  • Gross Profit

5. [Final Subheading] Depreciation expense:

  • Equipment (percentage x price); Vans (percentage x price);Loan & Bank interest (percentage x price)
  • Equipment & Vans (percentage x price); Loan & Bank interest (percentage x price)
  • (percentage x price)


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