Income Statement Template - Free Download

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.

INCOME STATEMENT EXCEL TEMPLATE

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

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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Hira Aziz

Hira Aziz - Author

She is a Business Content writer and Management contributor at 12Manage.com, where she contributes a business article weekly. She has over 2 years of experience in writing about accounting, finance, and business.

Cash Flow Statement Template

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