Please…

1. Please… • Please pick up a Bell Ringer from the basket and complete! • Use yesterday’s COGS Example to help you • When you finish, download today’s notes from Moodle

2. Cost of Goods Sold (COGS) Statement • A financial statement that calculates how much one unit of sale costs your company

3. Income Statement • Show’s the business’s revenues and expenses over a period in time • Shows if you received a profit or a loss • Sometimes called the Profit/Loss Statement

4. Income Statement • This statement can help you do the following: • Examine how sales, expenses, and income are changing over time • Forecast how well your business can expect to perform in the future • Analyze your costs to determine where you may need to cut back (or where you can increase spending)

5. Items… Look at the example on the back of your Bell Ringer Revenue – money made from the sale of goods or services Cost of Goods Sold – Cost of the inventory or the materials to make the item Gross Profit = Revenue – Cost of Goods sold Operating Expenses – costs necessary to run a business (fixed costs such as rent, utilities, advertising, etc)

6. Items… Net income before taxes – the amount remaining after COGS and operating expenses are subtracted from revenue Taxes –the amount of taxes you have to pay Net income/Loss after taxes – After taxes are subtracted, the Net Income (Profit) or Loss for the period

7. Example • Let’s Practice together! • Download the “Income Statement Example” from Moodle • Use the COGS Example from yesterday: “Hank’s Burger Joint”

8. On Your Own Practice! • Look at the worksheet that was passed out to you! • Let’s look at the directions together!