Net income should be $4,000

Sample Cafe

Income Statement, Cash Basis Month Ended January 31, 20xx

Item	Value	Note
Revenue	$40,000	Excludes $2,200 in receipts not yet purchased
Equipment	$0	Purchased last month for $12,000 (5-year life)
Insurance	$600	Premium for whole year
Rent and Utilities	$4,500	Includes $2,500 in rent and utility deposits
Coffee Purchased	$2,300	Includes $100 worth thrown away
Cups Purchased	$1,600	$700 still in inventory
Payroll	$14,800	Owe $2,400 in taxes
Interest on Loan	$200	Paid mid-month
Advertising/Promotion	$12,000	$3,000 each week
Total Expenses
Net Income