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Income Statement –
Example |
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123: Publication |
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Sales |
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$2,000,000 |
100.0% |
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Notes |
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Opening Inventory |
$38,000 |
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Plus: |
Purchases |
$521,000 |
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Less: |
Closing
Inventory |
$39,000 |
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Ingredient/Food Costs for Year |
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$520,000 |
26.0% |
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1 |
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Gross
Margin |
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$1,480,000 |
74.0% |
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2 |
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Packaging |
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$90,000 |
4.5% |
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3 |
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Gross
Margin with Packaging |
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$1,390,000 |
69.5% |
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Operating Expenses: |
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Wages and Benefits |
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$560,000 |
28.0% |
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4 |
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Management Salaries |
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$190,000 |
9.5% |
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Repairs & Maintenance |
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$112,000 |
5.6% |
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Rent |
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$100,000 |
5.0% |
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Advertising |
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$60,000 |
3.0% |
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Utilities |
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$45,000 |
2.3% |
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Vehicles & Trucks |
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$40,000 |
2.0% |
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Travel and Promotion |
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$30,000 |
1.5% |
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5 |
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Business Taxes and Insurance |
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$30,000 |
1.5% |
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Professional Fees |
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$20,000 |
1.0% |
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Other Expenses |
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$14,000 |
0.7% |
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Total
Operating Expenses |
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$1,201,000 |
60.1% |
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NET
PROFIT (*) EBITDA |
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$189,000 |
9.5% |
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6 |
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Notes |
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1 |
Food cost is usually the highest cost in a bakery |
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2 |
Gross Margin depends primarily on food costs |
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3 |
The more elaborate the packaging the higher the cost |
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4 |
Wages and benefits are the second largest variable
expense |
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5 |
Trade Shows and Community Promotions |
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6
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Before Interest, Depreciation, and Taxes
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(*)
Earnings before Interest, Taxes, Depreciation and Amortization |
