Income statement form

The income statement is a report that reflects the operating results of an enterprise during a certain accounting period. It can reflect the income realization of the enterprise during a certain accounting period, that is, the realized main business income. Since it reflects the situation during a certain period, the income statement is also called dynamic Report. In fact, the income statement is indeed the income statement. It used to be called the profit and loss statement and is now called the income statement.

Introduction to income statement table

(Each item in the income statement is listed in two columns: "number for this month" and "accumulated amount for the year")

(1) "Number of this month" column

The "monthly number" column of the income statement reflects the actual number of each item incurred this month. When preparing interim and annual financial statements, the "number of this month" column should be changed to the "number of previous year" column.

1. Generally filled in based on the analysis of the current period's balance of the account

Since this table is a dynamic statement that reflects the company's operating results for a certain period, each item in this column is generally filled in based on the analysis of the current period's balance of the account.

(1) The "operating income" item reflects the total income from the enterprise's business operations. This item should be filled in based on the analysis of the occurrences of the "Main Business Income" and "Other Business Income" accounts.

(2) The "operating cost" item reflects the actual costs incurred by the enterprise in operating its business. This item should be filled in based on the analysis of the "main business costs" and "other business costs" accounts.

(3) The "Business Tax and Surcharges" item reflects the business tax, consumption tax, urban maintenance and construction tax, resource tax, land value-added tax and education surcharges that the enterprise should bear when operating its business. This item should be filled in based on the analysis of the "Business Tax and Additional" account.

(4) The "Sales Expenses" item reflects the expenses incurred by enterprises in selling goods and commodity circulation enterprises in purchasing goods. This item should be filled in based on the analysis of the amount of the "operating expenses" account.

(5) "Administrative expenses" item reflects the expenses incurred by the enterprise's administrative management and other departments. This item should be filled in based on the analysis of the amount of the "Administrative Expenses" account.

(6) "Financial expenses" item reflects the interest expenses incurred by the enterprise, etc. This item should be filled in based on the analysis of the amount of the "Financial Expenses" account.

(7) "Asset impairment losses" item reflects various impairment losses incurred by the enterprise. This item should be filled in based on the analysis of the amount incurred in the "Asset Impairment Loss" account.

(8) The item "Profits and losses from changes in fair value" reflects the current gains and losses caused by changes in the fair value of the company's trading financial assets and other assets. This item should be filled in based on the analysis of the "profit and loss from changes in fair value" account.

(8) "Investment income" item reflects the income obtained by enterprises from foreign investment in various ways. This item should be filled in based on the analysis of the amount of the "Investment Income" account; if it is an investment loss, fill in the number "1".

(9) "Non-operating income" items and "non-operating expenditures" items reflect various incomes and expenditures incurred by an enterprise that are not directly related to its production and operations. These two items should be filled in based on the analysis of the occurrences of the "Non-operating income" account and the "Non-operating expenses" account respectively.

(11) The "income tax expense" item reflects the income tax deducted from the profit and loss of the current period by the enterprise in accordance with regulations. This item should be filled in based on the analysis of the occurrence amount of the "Income Tax Expense" account.

2. The profit composition and classification items are calculated and filled in based on the relevant items in this table.

Items such as "operating profit", "total profit", and "net profit" in the income statement are all calculated and filled in based on the relevant items, and will not be described again here.

(2) "Cumulative Amount for the Year" Column

This column reflects the cumulative actual number of occurrences of each project from the beginning of the year to the end of this month. The amount of each item in the "Cumulative Amount for the Year" column of last month's income statement should be added to the amount of each item in the "This Month's Amount" column of this month's income statement, and then the total amount should be filled in the corresponding item in that column.

Income statement formCalculation formula

At the end of the financial year, all accounts must be balanced. The balances of all accounts need to be placed in a trial balance (Trial Balance). Accountants need to prepare a profit and loss statement and a balance sheet based on the information in the bookkeeping. In addition to these two financial statements, some companies also prepare a cash flow statement and a statement of changes in shareholders' equity. The company will first calculate the company's net sales and cost of goods sold, and then calculate the gross profit (Gross Profit/Loss) after obtaining the numbers of these two items. Net Income/Loss can be calculated by subtracting the sum of income and expenses.

Method of calculating gross profit (Gross Profit/Loss):

Gross profit = Net Sales - Cost of Goods Sold

Net Sales = Sales - Sales Returns and Allowances

Cost of goods sold = Beginning Inventory + Purchases - Purchase Returns and Allowances + Freight-Out/Delivery Expense - Ending Inventory

How to calculate net profit:

Net profit = all income (Revenue) - all expenses (Expenses)