Accounting 101


P & L Statement
  JAN FEB MAR 1 QTR
REVENUE 400 500 600 1,500
COST OF SALES 300 375 420 1,095
GROSS MARGIN 100 125 180 405
GM % 25% 25% 30% 27%
EXPENSES 120 120 130 370
GROSS PROFIT (20) 5 50 35
TAXES 0 3 5 6
PAT (20) 2 45 27
  Calculated
P & L Statement   Profit & Loss, Income Statement
Shows financial activity over time (months / quarters / years)
     
REVENUE   or Sales - what is received for selling goods and services Jan: sold 4 units at $100 per unit
     
COST OF SALES   or Cost of Goods Sold - the direct cost of the goods and services sold. Jan/Feb cost is $75 per unit; March cost is $70 per unit
     
GROSS MARGIN   Calc: [REVENUE] - [COST OF SALES]
     
GM %   Calc: [GROSS MARGIN] / [REVENUE]
     
EXPENSES   The cost of indirect expenses.
     
GROSS PROFIT   PBT - Profit before taxes
Calc: [GROSS MARGIN] - [EXPENSES]
     
     
TAXES   Paid to government - based on profit
     
PAT   Profit After Taxes or PROFIT
Calc: [GROSS PROFIT] - [TAXES]
     


Last Updated on 9/1/97
By Richard Fisher