19 www.savta.org January/February 2023 | SAFE & VAULT TECHNOLOGY Of course, it’s commonplace for P&Ls to break down primary expense categories such as sales, general and administrative (SG&A) into more detailed subcategories such as: Rent Phone Utilities Salaries Payroll taxes Benefits Insurance Travel Other INCOME STATEMENT OF XYZ COMPANY For the Period December 1 - 31, 2020 PERIOD % Of YEAR-TO-DATE Y-T-D % Of INCOME: (Month of December) Net Sales (12 Months - Jan-Dec) Net Sales Gross Sales $50,000 105.26% $900,000 105.88% Less Discounts, Returns ($2,500) -5.26% ($50,000) -5.88% & Allowances (DR&A) ------------------------------- ----------------------- -------------- ------------------------ --------------- Net Sales $47,500 100.00% $850,000 100.00% Less Cost of Sales (COS) $32,000 67.37% $500,000 58.82% ------------------------------- ----------------------- -------------- ------------------------ --------------- Gross Profit $15,500 32.63% $350,000 41.18% EXPENSES: Sales & Marketing $5,000 10.53% $75,000 8.82% General & Administrative $12,000 25.26% $150,000 17.65% ------------------------------- ----------------------- -------------- ------------------------ --------------- Operating Expenses $17,000 35.79% $225,000 26.47% Income From Operations ($1,500) -3.16% $125,000 14.71% Other Income: Interest Income $250 0.53% $5,000 0.59% Rental Income $1,200 2.53% $24,000 2.82% ------------------------------- ----------------------- -------------- ------------------------ --------------- Total Other Income $1,450 3.05% $29,000 3.41% Other Expense: Other Expense: $1,000 2.11% $12,000 1.41% Income Taxes $4,500 9.47% $30,000 3.53% ------------------------------- ----------------------- -------------- ------------------------ --------------- Total Other Expense $5,500 11.58% $42,000 4.94% ================== ============= ======== =============== ========= Net Income ($5,550) -11.68% $112,000 13.18% Figure 6. Above is an example of a full year-end income statement.
