Income Statement

Beginning Inventory
Beginning Inventory = Owner’s Equity
Proprietorship
De Luna’s Capital = Php. 70,000.00
Muñoz’s Capital = Php. 70,000.00
Beginning inventory = Php. 140,000.00

Total Sales Income

Total sales income = Beginning Inventory *12

Beginning Inventory = Php. 140,000.00
Php. 140,000.00 *12
Total sales income = Php. 1,680,000.00

Purchased

Purchased = Tools and equipment + office equipment + construction of the bldg.

Tools and equipment = Php. 46,700.00
Office equipment = Php. 23,350.00
Construction of the bldg. = Php. 25,000.00
Purchased = Php. 95,050

Total of Goods Available for sale

Total of goods available for sale = Beginning Inventory + Purchased

Beginning Inventory = Php. 140,000.00
Purchased = Php. 95,050.00
Total of goods available for sale = Php. 235,050.00

Less Inventory End

Less Inventory End = Total goods available for sale - Purchased
Total goods available for sale = Php. 235,050.00
Purchased = Php. 95,050.00
Less Inventory End = Php. 140,000.00

Lost Cost of Goods Sale

Less Cost of Goods Sale = Total goods of available sale – Less Inventory End
Total goods of available sale = Php. 235,050.00
Less Inventory End = Php. 140,000.00
Lost cost of Goods sale = 95,050.00

Gross Profit

Gross profit = Total Sales Income – Purchased

Total Sales Income = Php. 1.680,000.00
Purchased = Php. 95,050.00
Gross profit = Php. 1,775,050.00

Operating Expenses

Less Operating Expenses = (Water bill + Electric bill + Internet) + 13th month pay
Water bill = Php. 500.00 *12 = Php. 6,000.00
Electric bill = Php. 2,000.00 *12 = Php. 24,000.00
Internet = Php. 950.00 *12 = Php. 11,400.00
th
13 month pay = Php. 10,000.00
Operating expenses = Php. 51,400.00

Salary of the Employee’s

Salary of the Employee’s = Total salary of the employees

Total Salary of the Employees = 75*31 = 2,325.00
Php. 2,325.00 *12 = Php. 27,900.00
Salary of the Employees = Php. 27,900.00
 Total Expenses

Total Expenses = Less Operating Expenses + Total salary of the employees

Less Operating Expenses =Php. 51,400.00
Total salary of the employees = Php. 27,900.00
Total Expenses = 79,300.00

Net Profit

Net profit = Gross profit – total expenses

Gross profit = Php. 1,775,050.00
Total expenses = Php. 79,300.00
Net profit = Php. 1,695,750.00