me statement of profe oth these entities have ternal audit sive income for the as the income s Cost of sales Gross profe Add Other operating income et income Gross operating income Less: Operating expenses water and electricity Profit before interest expense Net profit for the year/Net groft before tax X X X x X 18** 8 X 00 X 00 X the entity is a sole trader or a partnership, the income statement will end at profit for the year. This is because both entities are not separate legal entities and do not pay their own tax SARS does not view them as taxpayers). However, these entities' profits are taxed in the owners individual tax capacity The individual items under Other operating income and Operating expenses vary from entity to entity, depending on the individual incomes and expenses in each entity 135