Income Statement / Balance Sheet

Question 1

How to construct an income statement?

Answer 1

Sales 
- Cost of sales
= gross profit
- operating costs (rent salary advertisement)
= operating profit
- interest / loans
= pre tax profit
- tax
= net profit

Question 2

How to construct a balance sheet? ASSETS

Answer 2

ASSETS

Current

Cash
Stock
Debtors

Non current / fixed

Property
Machinery
Land
Vehicles
Equipment