Multi -step Income statement PERIODIC INVENTORY SYSTEM INCOME STATEMENT FOR THE YEAR ENDED XXXX Sales

Sales return and allowances Sales Discount Net sales Cost of Goods Sold Inventory - beginning Purchases X Purchase return and allowance X Purchase discount X (X) Net purchase X Freight In X Cost of goods purchased Cost of goods available for sale Inventory - year end Cost of goods sold Gross profit / Gross Loss

X X X (X) X

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X X (X) (X) X

Operating Expenses Selling Expenses Store salaries Advertising Depreciation - store equipment delivery vehicles Freight Out Total selling expenses Administrative Expenses Salaries expenses Utilities expenses Insurance expenses Depreciation - office equipment office building Total administrative expenses Total operating expenses Income from operations Other Revenue and Gains Interest revenue Dividend received Gain on sale of property,plant and equipment Rent revenue - sub-let of premises Other Expenses and Losses Interest expenses finance cost Loss on strike - employees Casualty losses due to vandalism Losses on sale of property,plant and equipment

X X X X X X X X X X X X (X) X X X X X X X X X X (X) X X

Net income / Net Loss

Multi -step Income statement PERPETUAL INVENTORY SYSTEM INCOME STATEMENT FOR THE YEAR ENDED XXXX Sales Sales return and allowances Sales Discount Net sales Cost of Goods Sold Gross Profit / Gross loss Operating Expenses Selling Expenses Store salaries Advertising Depreciation - store equipment delivery vehicles Freight Out Total selling expenses Administrative Expenses Salaries expenses Utilities expenses Insurance expenses Depreciation - office equipment office building Total administrative expenses Total operating expenses Income from operations Other Revenue and Gains Interest revenue Dividend received Gain on sale of property,plant and equipment Rent revenue - sub-let of premises Other Expenses and Losses Interest expenses Loss on strike - employees Casualty losses due to vandalism Losses on sale of property,plant and equipment X X X (X) X (X) X

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X X X X X X X X X X X X (X) X X X X X X X X X X (X) X X

Net income / Net Loss

Single Step - Income tatement PERPETUAL INVENTORY SYSTEM INCOME STATEMENT FOR THE YEAR ENDED XXXX Revenue Net sales Interest revenue Gain on sale of property,plant and equipment Dividend received Rent revenue - sub-let of premises Total revenues Expenses Cost of goods sold Selling expenses Administrative expenses Interest expenses Casualty losses due to vandalism Losses on sale of property,plant and equipment Total expenses Net income

X X X X X X X X X X X X (X) X