Income statement for trading firm
A trading or merchandising firm buys goods that sells. Whatever it buys, it sells; if buy
shoes, it sell shoes; and if it buys dresses, it sells dresses. The account used to report the selling
price of the merchandise is sales. Gross sales refer to the total sales. Sales discounts and sales
returns and allowances are deducted from the gross sales to arrive at the net sales. Generally, a
firm prepares financial statement on monthly basis. For tax purposes, it is prepared quarterly and
annually. It details the sales, the cost of sales, the operating expenses, and other expense and/ or
other income, if any. Below is a sample income statement of a trading firm.
An income statement is a financial statement that reports a company's financial
performance over a specific accounting period. Financial performance is assessed by giving a
summary of how the business incurs its revenues and expenses through both operating and non-
operating activities.
Metatag Merchandising
Income Statement
For the Year Ended June 30, 2020
Sales P 117,000
Less: Cost of Sales P 59,000
Gross Profit 58,000
Less: Operating Expenses
Communication P 1000
Delivery 5000
Rent 5500
Salary 8300
Bad debts 600
Office supplies 700
Store supplies 1500
Depreciation Expenses
Furniture and Equipment 1000 (23,600)
Operating Profit 34,400
Add: Other Income
Interest Income P 800
Commission Income 1500 (2,300)
Less: Other expenses
Interest Expense 1200 (1200)
Net Profit P 35,500
A trading or merchandising firm buys goods that sells. Whatever it buys, it sells; if buy
shoes, it sell shoes; and if it buys dresses, it sells dresses. The account used to report the selling
price of the merchandise is sales. Gross sales refer to the total sales. Sales discounts and sales
returns and allowances are deducted from the gross sales to arrive at the net sales. Generally, a
firm prepares financial statement on monthly basis. For tax purposes, it is prepared quarterly and
annually. It details the sales, the cost of sales, the operating expenses, and other expense and/ or
other income, if any. Below is a sample income statement of a trading firm.
An income statement is a financial statement that reports a company's financial
performance over a specific accounting period. Financial performance is assessed by giving a
summary of how the business incurs its revenues and expenses through both operating and non-
operating activities.
Metatag Merchandising
Income Statement
For the Year Ended June 30, 2020
Sales P 117,000
Less: Cost of Sales P 59,000
Gross Profit 58,000
Less: Operating Expenses
Communication P 1000
Delivery 5000
Rent 5500
Salary 8300
Bad debts 600
Office supplies 700
Store supplies 1500
Depreciation Expenses
Furniture and Equipment 1000 (23,600)
Operating Profit 34,400
Add: Other Income
Interest Income P 800
Commission Income 1500 (2,300)
Less: Other expenses
Interest Expense 1200 (1200)
Net Profit P 35,500
