Interim income statements are financial reports that cover a specific period shorter than a full fiscal year, typically a quarter or half-year. They provide insights into a company’s financial performance and are crucial for stakeholders to assess the company’s progress. Here are three diverse examples of interim income statements that illustrate different contexts and use cases.
A retail company, Fashion Trends, Inc., prepares an interim income statement to provide stakeholders with insights into its financial performance for Q2 of the fiscal year. This example highlights the sales performance and expenses typical for a retail environment.
| Particulars | Q2 2023 |
|---|---|
| Revenue | |
| Sales Revenue | $1,000,000 |
| Cost of Goods Sold | |
| Opening Inventory | $200,000 |
| Purchases | $600,000 |
| Closing Inventory | ($250,000) |
| Total COGS | $550,000 |
| Gross Profit | $450,000 |
| Operating Expenses | |
| Selling Expenses | $100,000 |
| Administrative Expenses | $50,000 |
| Total Operating Expenses | $150,000 |
| Operating Income | $300,000 |
| Other Income | $10,000 |
| Income Before Tax | $310,000 |
| Income Tax Expense | $75,000 |
| Net Income | $235,000 |
Tech Innovations, Ltd. prepares a semi-annual income statement for the first half of the year to analyze growth in revenue due to new software launches. This example is beneficial for tech businesses that are often project-based.
| Particulars | H1 2023 |
|---|---|
| Revenue | |
| Software Sales | $2,500,000 |
| Subscription Revenue | $1,200,000 |
| Total Revenue | $3,700,000 |
| Cost of Revenue | |
| Development Costs | $800,000 |
| Support Costs | $300,000 |
| Total Cost of Revenue | $1,100,000 |
| Gross Profit | $2,600,000 |
| Operating Expenses | |
| Marketing Expenses | $400,000 |
| General & Administrative | $300,000 |
| Total Operating Expenses | $700,000 |
| Operating Income | $1,900,000 |
| Other Income | $25,000 |
| Income Before Tax | $1,925,000 |
| Income Tax Expense | $460,000 |
| Net Income | $1,465,000 |
Green Earth Initiative is a non-profit organization that issues an interim income statement for the first quarter. This example illustrates how non-profits report their revenues and expenses.
| Particulars | Q1 2023 |
|---|---|
| Revenue | |
| Contributions | $800,000 |
| Grants | $200,000 |
| Fundraising Events | $150,000 |
| Total Revenue | $1,150,000 |
| Expenses | |
| Program Services Expenses | $600,000 |
| Management & General Expenses | $200,000 |
| Fundraising Expenses | $100,000 |
| Total Expenses | $900,000 |
| Change in Net Assets | $250,000 |