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Unformatted text preview: ing assets or liabilities incurred (accounts payable, inventory sold or supplies
used, for example). Net Income – the difference between Revenue and Expenses With all of this information, the Balance Sheet shows you whether you are generating a profit or you are
operating at a loss. For an example of a Balance Sheet, see Figure 5. Download free ebooks at bookboon.com
29 The Income Statement Managing Budgets Widget Works, Inc. Income Statement For the Month Ended February 28, 20XX Revenue Sales Revenue 9,700 Consulting Revenue 2,000 Investment Revenue 550 Expenses Salaries 3,800 Benefits 400 Rent 800 Utilities 325 Supplies 675 Inventory 2,000 Depreciation 875 Download free ebooks at bookboon.com
30 The Income Statement Managing Budgets Total Expenses 8875 Net Income $3,375 Figure 5: The Income Statement The bottom figure on the chart in Figure 5 is the Net Income. This is the difference between the
organization’s assets and its liabilities. It is the amount by which the equity of the organization increases
or decreases in a given period. This amount would also be recorded in an equity account, also called a
Retained Earnings account, depending on the type of organization yours is. This takes us back to the
Balance Sheet. Remember the sample Balance Sheet created for ABC Enterprises in the last chapter? Here
it is again. Notice where the Retained Earnings amount is listed. Please click the advert Budget-Friendly. Knowledge-Rich.
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31 The Income Statement Managing Budgets ABC Enterprises Balance Sheet As of November 30, 20XX Assets Liabilities Cash 8,500 Bank L...
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- Fall '13