Income Statement for a Small Business
Use this worksheet to prepare your Income Statement if you are already in business, and as a
format for pro forma (projected) income statements.
For period from ________ to _________
Less cost of goods sold
Purchases (direct materials)
Less closing inventory
Equals cost of goods sold
Gross profit (or income)
Rent or mortgage interest
Utilities (electricity, heat, etc.)
Advertising and promotion
Earnings (or loss) Before Taxes
Net Earnings (or loss)
Gross profit (or income) is obtained by deducting the cost of goods sold from sales.
Net earnings (or profit) or loss is obtained by deducting all expenses from the gross profit.
Net earnings is the amount to be transferred to the retained earnings section of the balance sheet.