Income statements of limited companies

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  • Created by: babygirl
  • Created on: 02-05-16 10:42
1. Income statement for limited companies
Revenue - Sales returns (returns inwards) = Net revenue
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2. opening inventory
purchases+ carriage in- purchases returns (returns outwards)= net purchases
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3. Net purchases+ opening inventory
Less closing inventory (stock not sold) = cost of sales
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4. Net revenue - Cost of sales = Gross Profit + other income
Less Expenses:
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5. Marketing, Administration, distribution, directors remuneration,
gross profit - expense = profit from operations
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6.profit from operations- finance costs= profit before tax
finance costs: (interest)
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7.profit before tax- tax
= profit/loss for the year
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Other cards in this set

Card 2

Front

purchases+ carriage in- purchases returns (returns outwards)= net purchases

Back

2. opening inventory

Card 3

Front

Less closing inventory (stock not sold) = cost of sales

Back

Preview of the back of card 3

Card 4

Front

Less Expenses:

Back

Preview of the back of card 4

Card 5

Front

gross profit - expense = profit from operations

Back

Preview of the back of card 5
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