Profit & Loss
The Profit and Loss Report, also known as the Income Statement, shows the financial performance of a business over a specific period of time.
It summarizes income, costs, and expenses to measure business performance.
- Operating Income Revenue generated from the company’s main business activities.
- Cost of Sales Direct costs required to produce goods or deliver services.
- Factory Overhead Cost Indirect production costs that support manufacturing but are not directly traceable to a specific product.
- Gross Profit Profit after deducting production-related costs from operating income.
- Operating Expense Expenses required to run the business outside production.
- Operating Profit Profit after deducting all operating expenses.
- Non Operating Income Income not related to the main business operations.
- Non Operating Expense Expenses not related to daily business operations.
- Net Profit Final profit after including all income and expenses.
FORMULA
Operating Income = from all coa_category operating-income
Cost of Sales = from all coa_category cost-of-sales
Factory Overhead Cost = from all coa_category factory-overhead-cost
Gross Profit = Operating Income - Cost of Sales - Factory Overhead Cost
Operating Expense = from all coa_category operating-expense
Operating Profit = Gross Profit - Operating Expense
Non Operating Income = from all coa_category non-operating-income
Non Operating Expenses = from all coa_category non-operating-expense
Net Profit = Operating Profit + Non Operating Income – Non Operating Expenses
Example
Scenarios
- Success Scenarios
- Failure Scenarios