Then, prepare a one-page income statement for the first year of the business you are planning to open, using appropriate categories of revenue and expenses. For assistance in identifying categories and sub-categories of revenue and expenses, refer to the Financial Statements--Help in preparing them link in the Class Resources area (particularly pages 6 through 8 of "Financial Statement Preparation Guidance Instructions: Financial Statement Entry Matrix") and/or IRS Form 1040, Schedule C.

For example, under operating expenses list rent, utilities, payroll, depreciation expenses, insurance, and so on. This part of the assignment is designed to help you with your business plan assignment. If you have a service business and do not sell tangible items that require you to maintain an inventory, you will not have to include a Cost of Goods Sold section in your Income Statement. Please round off cents to the nearest whole dollar value - do not show cents values.