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Example profit and loss statement

What is a profit and loss statement?


The profit and loss statement is a summary of a businesss income and expenses over a specific period. It
should be prepared at regular intervals (usually monthly and at financial year end) to show the results of
operations for a given period.
Calculating the cost of goods sold varies depending on whether the business is retail, wholesale,
manufacturing, or a service business. In retailing and wholesaling, computing the cost of goods sold during
the reporting period involves beginning and ending inventories. This, of course, includes purchases made
during the reporting period. In manufacturing, it involves finished-goods inventories, plus raw materials
inventories, goods-in-process inventories, direct labour, and direct factory overhead costs.
In the case of a service business, the revenue is being derived from the activities of individuals rather than
the sale of a product and hence the calculation of cost of goods sold is a smaller task due to the low-level
use of materials required to earn the income.
The image below shows how profit and loss are calculated.
Tip: Regularly produce profit and loss information (monthly) and compare against previous
months activities to ensure your profit expectations are being met.

Hint: Only those businesses that have goods (products) to sell will use the calculation of cost of
goods sold
Joes Motorbike Tyres
Profit and Loss Statement
For the Period ended Year One
Income
Sales 52000
Total Sales 52000
Cost of Goods Sold
Opening Stock $ -
Stock Purchases 34320
Less Closing Stock 3120
Total Cost of Goods Sold(COGS) 31200
Gross Profit 20800
Expenses
Advertising 500
Bank Service Charges 120
Insurance 500
Payroll 13000
Professional Fees (Legal, Accounti 200
Utilities & Telephone 800
Other: Computer Software 480
Expenses total 15600
Net Profit before Tax 5200

Note; Cost of Goods Sold calculation:

Towards the end of the year, Joe manages to purchase 100 more tyres on credit from his sup
order in the new year. This leaves him with $3,120 of stock on hand at the end of the year.
Joes Cost of Goods Calculation
Opening Stock Nil

Add Stock Purchased during the year $34,320

Equals Stock available to sell $34,320

Less Stock on hand at end of year $3,120


Cost of Goods Sold $31,200
Where a business is a service business, that is, you are selling services not goods or product
profit and loss statement will generally not have a cost of goods sold calculation. In some ins
where labour costs can be directly attributed to sales, then you may consider including these
cost of goods (services) sold.
( 1,000 tyres @ $ 52 each)

( See note below)

e tyres on credit from his supplier for an


and at the end of the year.

(1100 tyres @ 31.20 each)

(100 tyres @ 31.20 each)


services not goods or products, then the
sold calculation. In some instances,
may consider including these costs as a
Profit and Loss Statement
Instructions
Give careful thought to the headings.
Expand the sales income and expenses area if your business has distinct categories (e.g. a restaurant may have food sales and beverage sales listed separately and cost of sales for each also separated).
Month Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16
Income
Sales
Sale of goods/services $ 1,691,987.09 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sundry Income (e.g. Commission earned,
frachise fees etc.) $ 107.82 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Etc. $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Sales $ 1,692,094.91 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Less Discounts/Commissions
Sales Discounts given $ 3,704.75 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sales Commissions paid $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Discounts/ Commissions $ 3,704.75 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Net Income $ 1,688,390.16 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Cost of Sales
Salaries/overtime/allowance $ 678,599.75 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
EPF $ 56,511.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
SOCSO $ 11,276.70 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Incentive $ 31,755.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Insurance $ 1,148.15 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Medical $ 25,354.10 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Staff uniforms $ 5,760.48 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Lodging $ 88.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Meals $ 17,935.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Dobby $ 4,074.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Travelling & outstation exp $ 8,751.40 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
BGS expenses $ 5,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Access/OGSP cards -$ 84.80 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Tools & implement expenses $ 8,500.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sub-contractor - Project $ 298,779.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
$ 1,153,447.78 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Less Closing Stock $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Cost of Sales $ 1,153,447.78 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Gross Profit $ 534,942.38 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -


Expenses
General & Administrative
Bank charges $ 280.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
HP interest $ 1,008.82 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Loan interest $ 10,313.75 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
OD interest $ 7,709.61 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Consultant fees $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Office Supplies $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
License fees $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Business insurance $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Etc. $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total General & Administrative $ 19,312.18 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Marketing & Promotional
Advertising $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Promotion - General $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Promotion - Other $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Etc. $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Marketing & Promotional $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Operating Expenses
Newspapers & magazines $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Parking/Taxis/Tolls $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Entertainment/Meals $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Travel/Accomodation $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Laundry/dry cleaning $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Cleaning & cleaning products $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Sundry supplies $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Equipment hire $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Etc. $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Operating Expenses $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Motor Vehicle Expenses
Fuel $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Vehicle service costs $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Tyres & other replacement costs $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Insurance $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Registrations $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Motor Vehicle Expenses $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Website Expenses
Domain name registration $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Hosting expenses $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
etc $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Website Expenses $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Employment Expenses
Permanent/Others $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Salaries/Wages/overtime/allowance $ 88,940.51 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
EPF $ 9,720.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
SOCSO $ 1,425.65 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Other - Employee Benefits $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Recruitment costs $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Perm. Employment Expenses $ 100,086.16 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Casual
Salaries/Wages $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
PAYE $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Superannuation $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Other - Employee Benefits $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Recruitment costs $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Casual Employment Expenses $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Workcover Insurance $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Employment Expenses $ 100,086.16 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Occupancy Costs
Electricity $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Telephones $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Property Insurance $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Rates $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Rent $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Repair & maintenance $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Waste removal $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Water $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Etc. $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Occupancy Costs $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Other Expenses
GST expenses $ 178.42 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Rounding Adjustment -$ 0.01 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Add an expense description here $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Add an expense description here $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Add an expense description here $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Add an expense description here $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Add an expense description here $ - ### $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Other Expenses $ 178.41 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Total Expenses $ 119,576.75 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Month Net Profit / (Loss) $ 415,365.63 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -

Total Year to Date Net Profit / (Loss) $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63 $ 415,365.63
Instructions
Give careful thought to the headings.
Expand the sales income and expenses area if your business has distinct categories
(e.g. a restaurant may have food sales and beverage sales listed separately and cost of sales for each also separated).
Profit & Loss Statement
Month Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16
Income
Total Sales 1,692,095 0 0 0 0 0 0 0 0 0 0 0
Less Total Disc/Comm 3,705 0 0 0 0 0 0 0 0 0 0 0
Total Net Income 1,688,390 0 0 0 0 0 0 0 0 0 0 0
Less Total Cost of Gooods Sold 1,153,448 0 0 0 0 0 0 0 0 0 0 0
Gross Profit 534,942 0 0 0 0 0 0 0 0 0 0 0
Expenses
General & Administrative 19,312 0 0 0 0 0 0 0 0 0 0 0
Marketing & Promotional 0 0 0 0 0 0 0 0 0 0 0 0
Operating Expenses 0 0 0 0 0 0 0 0 0 0 0 0
Motor Vehicle Expenses 0 0 0 0 0 0 0 0 0 0 0 0
Website Expenses 0 0 0 0 0 0 0 0 0 0 0 0
Total Employment Expenses 100,086 0 0 0 0 0 0 0 0 0 0 0
Occupancy Costs 0 0 0 0 0 0 0 0 0 0 0 0
Other Expenses 178 0 0 0 0 0 0 0 0 0 0 0
Total Expenses 119,577 0 0 0 0 0 0 0 0 0 0 0
Monthly Net Profit / (Loss) 415,366 0 0 0 0 0 0 0 0 0 0 0
Total Year to Date Net Profit /
(Loss) 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366 415,366
Profit and Loss Ratios

Gross Margin
(Gross Profit / Net Income) 0.3168357603 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Net Margin
(Net Profit / Net Income) 0.2460128232 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Mark Up
((Net Income Less Cost of Goods Sold) /
(Cost of Goods Sold)) x 100 0.4637768517 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Break Even
( Expenses/((1-(Cost of Goods Sold/ Net
Income)) 377409.26054 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Example Balance Sheet
Joes Motorbike Tyres
Balance Sheet
As at end of Year One
Current Assets
Cash $5,100
Debtors $18,000
Stock $3,120
Total Current Assets $ 26,220.00
Non-current Assets
Computer $5,500
Store Fit Out $8,100
Office Equipment $15,000

Total Non-current Assets $28,600


Total Assets $54,820
Current Liabilities

Credit Card $5,500


Creditors $4,120
Total Current Liabilities $9,620
Non-current Liabilities

Total Non-current Liabilities

Total Liabilities $9,620


Net Assets $45,200
Shareholders Equity
Owners Funds $40,000
Current Year Profit $5,200
Total Shareholders' Equity $45,200
Balance Sheet
Instructions
The Balance Sheet shows the financial position of the business as at a point in time
Prepare a balance sheet for the start of the business, six months later and then at the end of the first year.
Draw the information from the Profit & Loss Statement and the Cash Flow Statement.
A Balance Sheet brings together the results from the Profit & Loss Statement and the Cash Flow Statement.
(Download from the Business Victoria website at http://www.business.vic.gov.au.)
Fill in the figures below, expanding or reducing the assets, liabilities and shareholders equity areas.
Month Balance b/f
Assets
Current Assets
Cash and bank balances $662,192.35
Debtors $2,915,903.21
Other debtors, deposit and repayment
Prepaymet $19,770.72
Deposit $518,461.80
Amount due from Directors $26,902.04
Insurance $226,932.00
Etc. $0.00
Total Prepaid expenses $ 792,066.56
Inventory
Tyres $0.00
Parts $0.00
Etc. $0.00
Total Inventory $ -
FD Deposit $ 1,173,772.70
Other current assets -$ 8,869.65
Total Current Assets ###
Fixed Assets
Computer & printers $30,162.71
Motor Vehicles $230,511.74
Office Equipment $101,804.87
Office renovations $285,714.27
Tools & equipment $1.00
Furniture & Fittings $58,341.21
Land & Building $230,420.00
Total Fixed Assets ###

Total Assets ###


Liabilities
Current Liabilities
Bank Overdraft $ 1,348,715.58
Other creditors and accruals $ 420,102.41
Creditors $ 245,015.40
GST collected $ 51,712.48
Borrowings $ 1,227,310.56
Amount owing to directors $ 22,597.25
Workcover Insurance Payable $ -
Current portion of long term debt $ -
Etc. $ -
Total Current Liabilities ###
Long Term Liabilities
Motor Vehicle Loan $ 234,318.95
Equipment Finance $ -
Long term Loans $ 1,428,212.14
Total Long Term Liabilities ###
Total Liabilities ###

Net Assets ###


Shareholders Funds ( Equity)
Owners Funds $ 1,000,000.00
Retained Earnings $ 494,036.20
Current Year Profit $ -

Total Shareholders Funds (Equity) ###


Balance Sheet Ratios

Current Ratio (Current Assets / Current Liabilities) 1.6694744383

Quick Ratio ( Current Assets less inventory) / (Current Liabilities less bank overdraft) <1 3
Working Capital Funds
(Current Assets Less Current Liabilities) 2,219,611

Leverage Ratio (Total Liabilities / Total Assets) 0.7691546108


Debt to Equity Ratio
(Total Liabilities / Total Shareholders Funds) 3.3319037183
rst year.

Statement.

Jun 16 Dec 16

$11,961.84 $0.00
$3,310,978.58 $0.00

$19,770.72 $0.00
$619,480.65 $0.00
$47,408.04 $0.00
$226,932.00 $0.00
$0.00 $0.00
$ 913,591.41 $ -

$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$ - $ -
$ 1,223,772.70 $ -
-$ 8,869.65 $ -
$5,451,434.88 $ -

$22,033.58 $0.00
$196,329.26 $0.00
$100,498.19 $0.00
$292,912.92 $0.00
$1.00 $0.00
$67,909.88 $0.00
$227,633.10 $0.00
$ 907,317.93 $ -

$6,358,752.81 $ -

$ 1,547,138.41 $ -
$ 208,429.59 $ -
$ 1,059.90 $ -
$ 76,852.55 $ -
$ 1,096,472.00 $ -
$ 22,597.25 $ -
$ - ###
$ - ###
$ - ###
$2,952,549.70 $ -

$ 197,093.99 $ -
$ - ###
$ 1,447,612.48 $ -
$1,644,706.47 $ -
$4,597,256.17 $ -

$1,761,496.64 $ -

$ 1,000,000.00 $ -
$ 494,036.20 $ -
$ 267,460.44 $ -

$1,761,496.64 $ -

1.846348219 #DIV/0! >1

4 #DIV/0! <1

2,498,885 0

0.7229807963 #DIV/0!

2.6098580409 #DIV/0! <1


$ 1,348,715.58 $ -

$ -
Example cashflow statement
Cash Flow Statement
Cashflows from Operations
Cash receipts from customers
(enter positive amounts) Cash Sales $ -
Cash collected from customers (debtors) $ -
Funding from Creditors
Stock purchased, not yet paid $ -
Cash paid for
(enter negative amounts)Total Expenses $ -
Inventory (stock)purchases $ -
Funding to Debtors
Sales made not yet collected $ -
Net Cash Flow from Operations $ -
Investing Activities
Cash receipts from
(enter positive amounts) Sale of property and equipment $ -
Matured Investments $ -
Cash paid for
(enter negative amounts)Purchase of property and equipment $ -
Purchase of investments $ -
Net Cash Flow from Investing Activities $ -
Financing Activities
Cash receipts from
(enter positive amounts) Increase in short term debt $ -
Increase in long term debt $ -
Increase in equity (proceeds from owners) $ -
Cash paid for
(enter negative amounts)Repayment of loans $ -
Dividends $ -
Net Cash Flow from Financing Activities $ -
Net Increase in Cash $ -
Cash at End of Year $ -
Date and starting cash
For the Year Ending
Cash at Beginning of Year
Financial Ratios Based on the Balance Sheet
Financial statement analysis includes financial ratios. Here are three financial ratios that are based solely on

Four financial ratios relate balance sheet amounts forAccounts ReceivableandInventoryto income stateme
To learn more about the income statement, go to:
Explanation of Income Statement
Quiz for Income Statement
Crossword Puzzle for Income Statement

The next financial ratio involves the relationship between two amounts from the balance sheet: total liabilitie
Previous 1234Next
ce Sheet
at are based solely on current asset and current liability amounts appearing on a company's balance sheet:

oryto income statement amounts. To illustrate these financial ratios we will use the following income statement inform
ce sheet: total liabilities and total stockholders' equity:
ance sheet:

ome statement information:


Gen
eral
Dis
cus
sio
n of
Inc
om
e
Stat
em
ent
may not
be a
good
indicator
of the
economic
value of
the asset
being
used up.
To
illustrate
this point
let's
assume
that a
company'
s
buildings
and
equipmen
t have
been fully
depreciat
ed and
therefore
there will
be no
depreciati
on
expense
for those
buildings

The
remainde
r of our
explanati
on of
financial
ratios and
financial
statement
analysis
will use
informatio
n from
the
following
income
statement
:
To learn
more
about the
income
statement
, go to:

Explanation of Income Statement

Quiz for Income Statement

Crossword Puzzle for Income Statement


Co
mm
on-
Size
Inc
om
e
Stat
em
ent
analysis.
Vertical
analysis
results in
common-
size
financial
statement
s. A
common-
size
income
statement
presents
all of the
income
statement
amounts
as a
percenta
ge of net
sales.
Below is
Example
Corporati
on's
common-
size
income
statement
after
each item
from the
income

The percentages shown for Example Corporation can be compared to other companies and to the industry avera
Financial Ratios Based on the Income Stateme
nies and to the industry averages. Industry averages can be obtained from trade associations, bankers, and library referenc
ome Statement
bankers, and library reference desks. If a company competes with a company whose stock is publicly traded, another sourc
publicly traded, another source of information is that company's "Management's Discussion and Analysis of Financial Condi
d Analysis of Financial Condition and Results of Operations" contained in its annual report to the Securities and Exchange C
he Securities and Exchange Commission (SEC). This annual report is the SEC Form 10-K and is usually accessible under th
is usually accessible under the "Investor Relations" tab on the corporation's website.