Topic 3b - income statement Flashcards
1
Q
step 1
A
Sales (R)
2
Q
After sales (R)
A
(sales returns) (L)
(discount allowed) (L)
3
Q
step 2
A
Net sales (R)
Sales - (sales)
4
Q
step 3
A
Less: Cost of Sales / Cost of Goods Sold (L)
5
Q
after cost of sales / cogs
A
- freight inwards
- customs duty
- cartage inwards
- (discount received)
all (L)
6
Q
step 4
A
(total COGS) (R)
freight inwards + customs duty + cartage inwards - discount received
7
Q
step 5
A
Gross Profit (R)
net sales - total COGS
8
Q
step 6
A
title: add other income
9
Q
after add other income
A
- Profit from sale of asset (L)
- Interest income (L)
10
Q
step 7
A
Total Income (R)
gross profit + other income
11
Q
step 8
A
title: less other expenses
12
Q
step 9
A
title: selling and distributing expenses
13
Q
what goes in S+D expenses
A
advertising
bad debts
sales wages/salaries
freight outwards
cartage outwards
fuel
all (L)
14
Q
step 10
A
Total S+D expenses (R)
15
Q
step 11
A
title: general and administration expenses
