Please… Please pick up a Bell Ringer from the

basket and complete!› Use yesterday’s COGS Example to help you

When you finish, download today’s notes from Moodle

Cost of Goods Sold (COGS) Statement

A financial statement that calculates how much one unit of sale costs your company

Income Statement

Show’s the business’s revenues and expenses over a period in time› Shows if you received a profit or a loss› Sometimes called the Profit/Loss

Statement

Income Statement

This statement can help you do the following:

1. Examine how sales, expenses, and income are changing over time

2. Forecast how well your business can expect to perform in the future

3. Analyze your costs to determine where you may need to cut back (or where you can increase spending)

Items… Look at the example on the back of your Bell

Ringer

1. Revenue – money made from the sale of goods or services

2. Cost of Goods Sold – Cost of the inventory or the materials to make the item

3. Gross Profit = Revenue – Cost of Goods sold4. Operating Expenses – costs necessary to run

a business (fixed costs such as rent, utilities, advertising, etc)

Items…5. Net income before taxes – the

amount remaining after COGS and operating expenses are subtracted from revenue

6. Taxes –the amount of taxes you have to pay

7. Net income/Loss after taxes – After taxes are subtracted, the Net Income (Profit) or Loss for the period

Example

Let’s Practice together!› Download the “Income Statement

Example” from Moodle› Use the COGS Example from yesterday:

“Hank’s Burger Joint”

On Your Own Practice!

Look at the worksheet that was passed out to you!› Let’s look at the directions together!