Income Statement The Income Statement provides a summary of revenues and expenses over a period of time, such as a month, quarter, or year. It provides information about the profitability of a business during the period specified. 1. The following is a cash basis income statement for Sample Cafe's first month of operation. Calculate the total expenses and net income for the business. Sample Cafe Income Statement, Cash Basis Month Ended January 31, 20xx Note Value Item $40,000 Excludes $2,200 in receipts not yet deposited. $0 Purchased last month for $12,000 (5-year life). $600 Premium for whole year. Revenue Equipment Insurance $4,500 Includes $2,500 in rent and utility deposits. $2,300 Includes $100 worth thrown away. $1,600 $700 still in inventory. $14,800 Owe $2,400 in taxes. Rent and Utilities Coffee Purchased Cups Purchased Payroll $200 Paid mid-month. Interest on Loan Advertising/Promotion $12,000 $3,000 each week. Total Expenses Net Income 2. Use the notes from the cash basis income statement for Sample Cafe in question 1 to redo it on an accrual basis, Be sure to break out cost of goods sold from the other expenses, and include a line item for the gross margin. Continued on next page