Brick & Stone

Income Statement for the year ended 31 December 2016

Notes $ $

Sales 2,500,000

Cost of Sales 1 1,100,000

Gross Profit 1,400,000

Expenses

Salaries & Wages 2 760,000

Employer NIS Contribution 2,400

Rent and Rates 3 240,000

Insurance 50,000

Maintenance 120,000

Depreciation 4 55,000

Loss on Disposal of Vehicle 5 10,000

Telephone 6 35,000

Electricity 7 54,000

Utilities 70,000

Entertainment 8 100,000

Donations 9 85,000

Provision for Bad Debts 10 80,000

Fines and Penalties 11 15,000

Drawings 105,000

1,781,400

Net Profit/ (Loss) (381,400)

Brick & Stone

Notes to the Income Statement

1. The Cost of Sales includes goods valuing $250,000 that were purchased for Mr. Stones personal use.
2. Salaries and Wages include $25,000 per month, and $20,000 per month, paid to Mr. Stone and Mr. Brick respectively.

$65,000 of the rent relates to the private dwelling