ENTREPRENEURSHIP

INCOME STATEMENT
ENTREPRENEURSHIP

STEPS
Pick a time period

Add up revenue

Calculate expenses

Determine the profit

Evaluate
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Overview
Sales
(Cost of goods/services sold)
Gross Profit
(Operating Expenses)
Operating Profit
(Interest Expense)
Profit before taxes
(Income tax)
Net Profit
 ENTREPRENEURSHIP

Assuming that you can serve 14 customers in a month

for both lighting engineering and events organizing and has
an income tax of 15%. You offer service charges for 33,000
and 25,000 respectively. You bought a printer for 32,000, a
laptop for 52,000 and different supplies worth 13,000 for you
to use for your business. Your 1M capital was actually a loan
from BDO with a 3.5% simple interest payable in 2years. You
have 7 assistants that work 250/hour for a maximum of
18hrs/week. You thought of increasing your market by
advertising to ABS-CBN that would air for 6months which
under the contract a deal worth 125,000. This all happened
within the last 2 quarters of the current year.
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XXX COMPANY
INCOME STATEMENT
For July 1 - Dec. 31, 2017
REVENUES

Sales (33,000+25,000)*(6months)(14) P 4,872,000.00

EXPENSES
Printer 32,000.00
Laptop 52,000.00
Supplies 13,000.00
(97,000.00)
Gross Profit 4,775,000.00

Operating Expenses:
Advertisement 125,000.00
Salary 250*18hrs*7staff*4weeks*6months 756,000.00
(881,000.00)
Operating Profit 3,894,000.00
Interest Expense (1,000,000*0.035)/4 (8,750.00)
Profit before tax 3,885,250.00
Tax (Income Tax) (4,872,000*0.15) (730,800.00)
NET INCOME (PROFIT) P 3,154,450.00
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You started a fruit shake business in the Rodriguez

Hall. You bought mangoes for P180, pineapples for P230,
apples for P300 and bananas for P40. Then you also
bought 3 cans of milk for P25 each and a kilo of brown
sugar for P35. All raw materials were good for 1 month.
You assessed that electric bill would cost you P1,000
monthly while paying P100 daily for the person in-charge.
You are only open every weekdays. You borrowed P5,000
from your parents as a start-up help and promised to give
them an interest of 20% by the end of the year. By
December you already calculated a total revenue of
P113,800. Create your annual income statement.
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XXX Company
INCOME STATEMENT
For the Year Ended Dec. 31, 2017
REVENUES

Sales P 113,800.00

EXPENSES
Cost of Goods Sold (180+230+300+40+(25*3)+35)*12months (10,320.00)

Gross Profit 103,480.00

Operating Expenses:
Electric Bill 1,000*12months 12,000.00
Salary 100*5days*4weeks*12months 24,000.00
(36,000.00)

Operating Profit 67,480.00

Interest Expense 5,000*0.20 (1,000.00)

NET INCOME (PROFIT) P 66,480.00

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REFLECTION

Why is it important to know if the

business profits or not??