The income statement reflects the hypothetical financial performance of a food truck venture, taking into account the projected revenues, cost of goods sold, and various operating expenses.
Based on the information provided, the financial statement for a hypothetical food truck venture can be estimated as follows:
Income Statement For the Year Ended (Month/Date/Year)
Revenue:
Gross Sales: $100,000
Less Sales Returns and Allowances: $5,000
Net Sales: $95,000
Cost of Goods Sold:
Beginning Inventory: $10,000
Add: Purchases: $40,000
Direct Labor: $20,000
Indirect Expenses: $5,000
Less Ending Inventory: $15,000
Cost of Goods Sold: $60,000
Gross Profit: $35,000
Expenses:
Advertising: $2,000
Bank Charges: $500
Commissions: $1,000
Contract Labor: $3,000
Credit Card Fees: $1,000
Delivery Expenses: $2,500
Dues and Subscriptions: $500
Insurance: $3,000
Interest: $1,500
Maintenance: $2,000
Miscellaneous: $1,000
Office Expenses: $1,500
Payroll: $15,000
Permits and Licenses: $1,000
Postage: $500
Professional Fees: $2,000
Property Taxes: $2,000
Rent: $24,000
Telephone: $1,200
Travel: $2,000
Utilities: $3,000
Total Expenses: $85,200
Net Operating Income:
$35,000 - $85,200 = ($50,200)
Other Income:
Gain (Loss) on Sale of Assets: $0
Interest Income: $500
Total Other Income: $500
Net Income (Loss):
($50,200) + $500 = ($49,700)
This estimated income statement reflects the hypothetical financial performance of a food truck venture, taking into account the projected revenues, cost of goods sold, and various operating expenses.
Complete question:
Create a financial statement for your hypothetical new business venture. Lets use a Food Truck. Using the above template, and based on surveying a specific market place, make a best-guess estimated statement exhibiting profit and loss.