Income Statement Example

Wilma's Widgets Income Statement for the Years Ending 1998 and 1999

1998 ($) 1999 ($)

Sales 900,000 990,000

Less Cost of Goods Sold (250,000) (262,500)

GROSS PROFIT ON SALES 650,000 727,500

Less General Operating Expenses (120,000) (127,000)

Less Depreciation Expense (30,000) (30,000)

OPERATING INCOME 500,000 570,000

Other Income 50,000 30,000

EARNINGS BEFORE INTEREST AND TAX 550,000 600,000

Less Interest Expense (30,000) (30,000)

Less Taxes (50,000) (54,500)

NET EARNINGS (Available Earnings for Dividends) 470,000 515,000

Less Common and/or Preferred Dividends Paid (70,000) (80,000)

RETAINED EARNINGS $400,000 $435,500

Income Statement Example
Wilma's Widgets Income Statement for the Years Ending 1998 and 1999
	1998 ($)	1999 ($)
Sales	900,000	990,000
Less Cost of Goods Sold	(250,000)	(262,500)
GROSS PROFIT ON SALES	650,000	727,500
Less General Operating Expenses	(120,000)	(127,000)
Less Depreciation Expense	(30,000)	(30,000)
OPERATING INCOME	500,000	570,000
Other Income	50,000	30,000
EARNINGS BEFORE INTEREST AND TAX	550,000	600,000
Less Interest Expense	(30,000)	(30,000)
Less Taxes	(50,000)	(54,500)
NET EARNINGS (Available Earnings for Dividends)	470,000	515,000
Less Common and/or Preferred Dividends Paid	(70,000)	(80,000)
RETAINED EARNINGS	$400,000	$435,500