Preparing income statements

What you'll learn

1. 1

   Think of a lemonade stand 🍋. You sold cups of lemonade and bought lemons and sugar. The income statement is a special report that shows if you made a profit or a loss.

2. 2

   What does an income statement show?

3. 3

   Drag the bricks to build your income statement for the lemonade stand. Start with Revenue (sales), then subtract Costs (expenses).

4. 4

   Let's do one together for a small business that sold £500 of cakes 🎂 and spent £200 on ingredients and £50 on packaging.

5. 5

   If Revenue = £800 and Costs = £350, what is the profit?

6. 6

   Now build the income statement for a business that sold £1,200 worth of candles 🕯️ and had costs of £400 for wax and £150 for wicks.

7. 7

   A company had Revenue = £2,000 and Costs = £1,200. What is the profit?