• Coming soon...a Bored of Studies event for 2020 HSC students
    Watch this space!
  • Looking for HSC notes and resources?
    Check out our Notes & Resources page

Revenue Statement ??? (1 Viewer)

16021991

UNSW !!
Joined
Dec 19, 2006
Messages
60
Location
My Study Desk
Gender
Female
HSC
2009
Hi Everyone,

I have the balance sheet down, but I get so so confused by revenue statements (e.g. where everything goes - individual things as well as gross profit, net profit, etc). :spzz:

I've looked up "sample revenue statements", "examples of profit and loss statement", "sample income statements", etc. But can't make sense of it really.

Can anyone give me easy to understand tips about revenue statements or maybe examples of revenue statements you;ve done/found??

Thanks guys :)
 

nimssyk

Captn
Joined
May 15, 2007
Messages
25
Location
Behind You
Gender
Male
HSC
2009
Lol ill give it a crack

Ok - first of all u should know that a revenue statement is officially called Statement of Financial Performance

It shows the businesses operating efficiency.

It highlights the Revenue earned, expense incurred over accounting period and therefore if the business has made profit or loss (hence the other name profit/loss staement)

The main things that get shown are:

1- Operating revenue from sales of inventory, services, revenue from non-operations (ie. Commission, rent, interest)

2- the Cost of Goods Sold --> or how much inventory the business had at the begining of the financial period plus how much they bought during the period minus the amount of closing inventory (all in $ values)

3 - Then when u take COGS away from revenue (Sales - COGS) you get the businesses GROSS PROFIT

4 - Then the next set of headings are the businesses expenses --> i.e. costs incurred in doing business but not actually buying stock (eg. phone bills, rent, marketing etc)

When you take away Expenses from Gross profit (Gross Profit - Expenses) you get the businesses Net profit before tax

a lot of the time it just stops there ...but real ones are much more complicated
 

Eddykungfu

Member
Joined
Aug 17, 2008
Messages
322
Gender
Male
HSC
2009
Here are the Equations to hopefully Help :).

Sales - Cost of Goods Sold = Gross Profit

Cost of Goods Sold = Opening Stock + Purchases - closing Stock.

Gross Profit + Other Income = Gross Income. <<-- note this is not as common.

Gross Income - Operating Expenses = Net Profit.
 

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top