What is a profit and loss statement?

The profit and loss statement is a summary of a business’s income and expenses over a spec
period. It should be prepared at regular intervals (usually monthly and at financial year end)
the results of operations for a given period.
Calculating the cost of goods sold varies depending on whether the business is retail, wholes
manufacturing, or a service business. In retailing and wholesaling, computing the cost of goo
during the reporting period involves beginning and ending inventories. This, of course, includ
purchases made during the reporting period. In manufacturing, it involves finished-goods inv
plus raw materials inventories, goods-in-process inventories, direct labour, and direct factor
overhead costs.
In the case of a service business, the revenue is being derived from the activities of individua
than the sale of a product and hence the calculation of cost of goods sold is a smaller task du
low-level use of materials required to earn the income.

MAISON EXCELLENTIA
Profit and Loss Statement
For the Activity of Buying and Selling 120,000 Kg of Palm Oil
Income
Sales ( 120,000 kg @ $ …. each 25kg
Total Sales
Cost of Goods Sold
Opening Stock
Stock Purchases
Less Closing Stock
Total Cost of Goods Sold(COGS)
Gross Profit
Expenses
Packaging
Transport
Bank Service Charges
Bank interest on loan (18% of BIF 637 562 300)
Insurance
Professional Fees (Legal, Accounting, admin)
Utilities & Telephone
Expenses total
Net Profit before Tax
ess’s income and expenses over a specific
ally monthly and at financial year end) to show

n whether the business is retail, wholesale,

wholesaling, computing the cost of goods sold
ding inventories. This, of course, includes
facturing, it involves finished-goods inventories,
ntories, direct labour, and direct factory

derived from the activities of individuals rather

f cost of goods sold is a smaller task due to the
e.

Kg of Palm Oil ($1=BIF 4100)

USD BIF
168,048 688,996,800
168,048 688,996,800
-
- -
112,032 459,331,200
- -
112,032 459,331,200
56,016 229,665,600
-
14,000 57,400,000
3,500 14,350,000
200 820,000
23,721 97,256,100
1,000 4,100,000
1,000 4,100,000
50 205,000
43,471 178,231,100
12,545 51,434,500
27,991
 5,742
143,541
1.4004 35.01

120000 23.34
0.9336
112,032

637,562,300 956,343,450
114,761,214