Statement of Income and a Balance Sheet - Assignment Example

 Major components of the income statement include revenues, cost of revenues, gross profit, net profit, and net income.

The balance sheet however illustrates an enterprise’s financial position by identifying its resources, assets, and the sources of finance for the resources. It relies on the balance sheet equation

Total assets = total equity + total liabilities

The following is the developed income statement for the case.

ABC

Income statement

For the period ending October 2012

Revenues

Beverage sales for the month                                                                                            27907

Food sales                                                                                                                           54600                         

Total revenues                                                                                                                   82507

Expenses

Laundry and dry cleaning expenses for the month of 2456

Payroll cost                                                                                               13490

The total cost of food and beverage was 24752

Rent                                                                                                             2500

Insurance                                                                                                       200

Total expenses                                                                                                                    43398

Net income                                                                                                                          39109

Below is the balance sheet for the case scenario

ABC

Balance sheet

As of October 2012

Assets

Shuttle van                                                                                                                          34103

Office supplies                                                                                                                        358

Accounts receivables                                                                                                             3894

Food inventory                                                                                                                     12654

Cash in bank                                                                                                                         45789

Beverage inventory                                                                                                               51258

Total assets                                                                                                                         148056

Liabilities

Accounts payable                                                                                 6891

Balance on loan                                                                                   15897

Total liabilities                                                                                                                      22788

Common stock                                                                                      86159

Retained earnings                                                                                 39109

Total equity                                                                                                                           125256

Total liabilities and equity                                                                                                  148056

(Nikolai, Bazley and Jones, 213- 217)