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Income statement example for service business. Here is a sample income statement of a service type sole proprietorship business. By examining a sample balance sheet and income statement small businesses can better understand the relationship between the two reports. Therefore the income statement will be a basic breakdown of income and expenses. Since service based companies do not sell a product the income statement will not contain cost of goods sold.
Sample income statement for abc cleaners. The purpose of income statements. The balance sheet and the income statement are two of the three major financial statements that. Then subtract all operating expenses.
All amounts are assumed and simplified for illustration purposes. Remember the income statement can be used to track the service business s financial performance for a given month quarter or year. Every time a company records a sale or an expense for bookkeeping purposes both the balance sheet and the income statement are affected by the transaction.
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