Page 125 - Drinks Industry - 14 Jan 2016

ROADMAP

STAGE 1

g) Funding & Financials
Continued

1. Proit and Loss Statement
(P&L)* Simple Proit & Loss (P&L) Layout:

also known as an Income Statement, is
a inancial statement that summarizes Sales 500
the sales, costs and expenses incurred Cost of sales -200
during a speciic period of time. Gross Profit 300

It is based on a very simple formula:
Expenses:
Sales minus costs equals proit. Heating & Lighting 20
Everything else is a matter of Insurance 20
separating sales or cost into more Advertising 50
detail and adding subtotals. Sales are Salaries 10
typically shown at the top of the P&L. Total Expenses -100
Costs are shown below sales, and
proit or loss is at the bottom. In this
example shown, sales of 500 at a cost Net Profit 200
of 200 leaves a gross proit of 300 less
expenses of 100, delivering 200 in net
proit on the bottom line.

* Source: www.charteredaccountants.ie
for inancial info & templates

125