The income statement, also known as the profit and loss statement, is a key financial document that summarizes a company’s revenues and expenses over a specific period. It provides insights into the company’s profitability and operational efficiency. Below are three diverse examples of income statement formats, each tailored to different types of businesses.
This example illustrates an income statement for a small retail company, ABC Retailers, for the fiscal year ending December 31, 2023. Small businesses often have simpler income statements that focus on core revenue and expenses.
| Income Statement for ABC Retailers | For the Year Ended December 31, 2023 |
|---|---|
| Revenue | |
| Sales Revenue | $250,000 |
| Cost of Goods Sold (COGS) | |
| Beginning Inventory | $20,000 |
| Purchases | $100,000 |
| Ending Inventory | ($30,000) |
| Total COGS | $90,000 |
| Gross Profit | $160,000 |
| Operating Expenses | |
| Rent Expense | $30,000 |
| Utilities Expense | $5,000 |
| Salaries Expense | $40,000 |
| Total Operating Expenses | $75,000 |
| Operating Income | $85,000 |
| Other Income/Expenses | |
| Interest Expense | ($5,000) |
| Net Income Before Tax | $80,000 |
| Income Tax Expense | ($16,000) |
| Net Income | $64,000 |
This income statement example is for a mid-sized technology firm, Tech Innovators Inc., for the quarter ending September 30, 2023. Technology companies often have various revenue streams, including product sales and service income.
| Income Statement for Tech Innovators Inc. | For the Quarter Ended September 30, 2023 |
|---|---|
| Revenue | |
| Product Sales | $500,000 |
| Service Revenue | $200,000 |
| Total Revenue | $700,000 |
| Cost of Goods Sold (COGS) | |
| Beginning Inventory | $50,000 |
| Purchases | $150,000 |
| Ending Inventory | ($60,000) |
| Total COGS | $140,000 |
| Gross Profit | $560,000 |
| Operating Expenses | |
| Research & Development Expense | $100,000 |
| Marketing Expense | $50,000 |
| Administrative Expenses | $30,000 |
| Total Operating Expenses | $180,000 |
| Operating Income | $380,000 |
| Other Income/Expenses | |
| Interest Income | $2,000 |
| Interest Expense | ($8,000) |
| Net Income Before Tax | $374,000 |
| Income Tax Expense | ($74,800) |
| Net Income | $299,200 |
This income statement is designed for a non-profit organization, Helping Hands, for the fiscal year ending June 30, 2023. Non-profits present their income statements differently to reflect their mission-driven focus.
| Income Statement for Helping Hands | For the Year Ended June 30, 2023 |
|---|---|
| Revenue | |
| Contributions | $450,000 |
| Grants | $150,000 |
| Fundraising Events | $100,000 |
| Total Revenue | $700,000 |
| Expenses | |
| Program Services | $400,000 |
| Administrative Expenses | $120,000 |
| Fundraising Expenses | $50,000 |
| Total Expenses | $570,000 |
| Change in Net Assets | $130,000 |
| Net Assets at Beginning of Year | $300,000 |
| Net Assets at End of Year | $430,000 |
These examples illustrate various income statement formats tailored to different business types, providing clarity on revenue, expenses, and overall financial performance.