After reviewing this week's reading, and visiting the web sites that offer additional information about financial statements and balance sheets, you will explain and prepare an income statement.
Complete the following:
- In a document totalling a minimum of one page, explain the following parts of an income statement:
- Gross profits
- Operating expenses
- Operating profits
- Net profits
- Prepare an income statement for a profitable small business. Include at least 10 operating expenses. Use an income tax rate of 25%.
Be sure to use APA formatting. For more APA information view the Tools & Resources page.