Business ( income statement

• Income statement

  A financial document that can be produced by any organisation, providing a snapshot in time of the organization's financial position
• Components of an income statement

  • Sales revenue
  • Cost of sales
  • Gross profit
  • Expenses
  • Profit for the year
• Sales revenue

  The money received from selling your goods
• Cost of sales


  How much it costs to make your goods, e.g. raw materials
• Gross profit


  The money you make when you take away cost of sales from your revenues
• Expenses


  Includes all other costs (overheads) the business incurs, e.g. rent, wages
• Profit for the year

  The profit made once all expenses are taken away from the gross profit