Single-Step Income Statement Examples

Understanding Single-Step Income Statements

A single-step income statement is a simplified financial report used to summarize a company’s revenues and expenses in a straightforward format. Unlike multi-step income statements, which separate operating and non-operating income, single-step income statements provide a clear snapshot of profit or loss without extensive detail. They are particularly useful for smaller businesses or those looking for simplicity in their financial reporting.

Example 1: Retail Business Income Statement

Context

A local retail store, XYZ Boutique, prepares a single-step income statement to provide a clear financial overview for its annual review.

XYZ Boutique sells clothing and accessories, and this income statement reflects total revenues and expenses, allowing stakeholders to assess profitability effectively.

Single-Step Income Statement for XYZ Boutique
For the Year Ended December 31, 2023

• Total Revenues

  • Sales Revenue: $250,000
  • Other Income: $5,000
  • Total Revenues: $255,000

• Total Expenses

  • Cost of Goods Sold: $150,000
  • Rent Expense: $30,000
  • Salaries Expense: $40,000
  • Utilities Expense: $5,000
  • Total Expenses: $225,000

• Net Income

  • Net Income: $30,000

Notes

This income statement provides a straightforward view of the retail store’s performance. Stakeholders can quickly see that XYZ Boutique generated a net income of $30,000 by subtracting its total expenses from total revenues.

Example 2: Consulting Firm Income Statement

Context

ABC Consulting, a small consulting firm, utilizes a single-step income statement to present its financial results to investors and clients.

The firm offers various consulting services and aims to demonstrate its profitability in a simple format.

Single-Step Income Statement for ABC Consulting
For the Year Ended December 31, 2023

• Total Revenues

  • Consulting Services Revenue: $400,000
  • Interest Income: $2,000
  • Total Revenues: $402,000

• Total Expenses

  • Salaries Expense: $200,000
  • Marketing Expense: $50,000
  • Office Supplies Expense: $10,000
  • Rent Expense: $20,000
  • Total Expenses: $280,000

• Net Income

  • Net Income: $122,000

Notes

ABC Consulting’s single-step income statement illustrates its strong profitability with a net income of $122,000. This format aids stakeholders in assessing its financial health without unnecessary complexity.

Example 3: Non-Profit Organization Income Statement

Context

A local charity organization, Helping Hands, uses a single-step income statement to summarize its financial activities for the fiscal year. This statement is vital for transparency and accountability to donors and stakeholders.

Helping Hands offers various community services, and the single-step format helps convey its financial position concisely.

Single-Step Income Statement for Helping Hands
For the Year Ended December 31, 2023

• Total Revenues

  • Donations: $150,000
  • Grants: $50,000
  • Fundraising Events: $20,000
  • Total Revenues: $220,000

• Total Expenses

  • Program Services Expense: $100,000
  • Administrative Expense: $40,000
  • Fundraising Expense: $30,000
  • Total Expenses: $170,000

• Net Income

  • Net Income: $50,000

Notes

The single-step income statement for Helping Hands provides a clear overview of its financial position. With a net income of $50,000, the organization demonstrates its ability to manage funds effectively, crucial for maintaining donor trust and support.