Income Statement Template - Free Download

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You know you can prepare your income statement in just a click. In AD’s income statement template, you just have to put your figures and you will get your income statement in a minute. Income statement is also known as profit and loss statement. It depicts company’s true financial performance over a specific period of time. Moreover, it is one of the most important financial statement out of other statements such as balance sheet and cash flow statement.

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Income Statement Excel Template

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How To Use The Template

How to prepare your own income statement using AD’s template, in this section I will let you know.

Here, you can get a quick snippet of your revenues, gross profit, and net income in the first rows of the template. But first you have to insert your own numbers in the blocks to get the desired results. The template contains three sheet, the first one is the introduction sheet, the second one is presenting a demo data (you can edit it too), and last one is totally blank where you can put your own numbers.

It’s very easy to use AD’s excel template. Here are some useful tips on how to edit the template.

Fist download your free template.
Then make excel editable by clicking editable option pointing at the front top.
Enter you own numbers in cells
If you need to add more expenses or revenues, you have to add rows. You can add it by right clicking the cursor and click insert or simply use a short key (Ctrl + Shift + plus sign).
Such that you may need to remove some expenses or other rows. To do that simply point your cursor on that row and press delete button.

Income Statement Format

Steps of Preparing an Income Statement

It’s very easy to prepare an income statement because it requires only 8 steps to follow.

1st Step: Calculate Net Sales
2nd step: Calculate Cost of Goods Sold
3rd Step: Calculate Gross Profit
4th Step: Calculate Operating Expenses
5th Step: Calculate Operating Income
6th Step: Calculate the Net Income before Interest & Taxes (EBIT)
7th Step: Calculate EBT
8th Step: Calculate Net Income

Learn complete guide on how to prepare income statement here:

How to Prepare an Income Statement?

Solved Example

For your understanding, here is a dummy data and with the help of this data, you will learn how to prepare it.

The following data are related to Mr. Junaid after adjustment at Dec 31, XXXX:

Sales $250,000
Merchandise inventory (opening) 10,000
Purchases 53,000
Commission income 1,000
Sales discount 5,000
Junaid Drawing 19,000
Utility expense 4,000
Depreciation expense 5,000
Bad debt expense 3,000
Salaries expense 10,000
Rent expense payable 11,000
Allowance for bad debts 11,000
Merchandise inventory (ending) 15,000

Prepare an income statement with the help of above data.

Mr. Junaid

Income statement

For the period ended Dec 31, XXX

Sales		$250,000
Less: Sales discount		(5,000)
Net Sales		245,000
Less: Cost of Goods Sold
Opening Inventory	$10,000
Add: Purchases	53,000
Goods available for sale	63,000
Less: Ending inventory	(15,000)
Cost of Goods Sold (COGS)		(48,000)
Gross Profit		197,000
Less: Operating expenses
Utility expense	4,000
Depreciation expense	5,000
Bad debt expense	3,000
Salaries expense	10,000
Total operating expenses		(22,000)
Operating income		175,000
Add: Commission income		1,000
Net Income		176,000

So, the net income for the period is $176,000.

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Cash Flow Statement Template

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