Year End Income Statement Example

An income statement also known as a profit and loss statement shows revenue and expense over a period of one year.

Year end income statement example. Preparation of income statement and balance sheet. Along with the balance sheet and the cash flow statement the income statement is one of the three basic financial statements. The multi step income statement format comprises a gross profit section where the cost of sales is deducted from sales followed by income and expenses to reach an income before tax. A year end income statement presents a summary of a company s revenue and expenses for the 12 months prior to the end of a fiscal year.

Inventory at 31 december 2014 was valued at 4500. For many businesses their fiscal year mirrors a calendar year and ends on december 31 but just as many businesses use a custom fiscal year that ends in some month other than december. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. The following additional information is available.

Use this accessible template to create an income statement. As compared to a single step income statement a multi step income statement examples are more complex. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. This example income statement is a single step statement because it only lists.

Example 2 multi step income statement.