Income statement 0.0 / 5 ? Business Studies & EconomicsIncome statement A2/A-levelAQA Created by: Adriana JeciuCreated on: 03-12-22 00:34 What show us income statement? Income statement shows whether the business has made a profit or a loss 1 of 8 Revenue Money coming in from sales 2 of 8 Cost of sales Cost that are directly linked to the product (raw materials, direct labour) 3 of 8 Other expenses Costs that are indirectly linked to the business (advertising, Internet bills) 4 of 8 Net profit Actual profit (re-invested, retained profit, dividens) or loss of business 5 of 8 Formula for income statement Revenue - Cost of sale = Gross profit - Other expenses = Operating Profit - Tax + Internet = Net Profit 6 of 8 Profitability Gross Profit / Revenue * 100% 7 of 8 13300/35000*100%=38% For every 1 pound the business makes in sales it has 38 p left as operating profit 8 of 8
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