Final Project—Income Statement Template
Every business has a financial statement that is unique to the business products and services. This assignment is the starting point to developing the financial statements for the business concept. The first step is to assess the Income Statement categories and account for all the expenses for your business concept. There is an Income Statement Template for you to use that will have the basic categories for a hospitality business. Be sure to review the Descriptions Worksheet within the Income Statement template for additional explanations to assist you in defining the right categories for your business. Here are the steps of the assignment:
- Open and Save the income statement template and add your business concept name at the top.
- Review the expense categories and add or delete lines based on your business concept. For example, a fast food restaurant likely will not use linen, so that row can be deleted. If you are not serving alcohol it would not be necessary to have separate beverage line items. Your concept may have a merchandising component and sell t-shirts; you would want to add a merchandise category to the statement.
- The next step is to add a description of the expense in column B. For example:
|
Hourly Employees |
This expense is the amount that the business will spend on hourly employees, each accounting period. It includes their wages only. |
- The next steps are to indicate for each expense if it is a controllable or uncontrollable cost and whether it is fixed, variable, semi-variable, or step. See Descriptions Worksheet within the Income Statement template for additional explanations.
- Review the revenue categories and determine which match your business concept and delete or add any categories.
- The next step is to determine what the food and beverage percentages will be for the concept – this will be the goal percentages. This will vary based on the type of concept. For example a fast food operation might run a 35% food cost where a fine dining may be 55%.
- The last part of the assignment determines for the business concept your estimate of the number of seats, table turnover rate, the number of days open per year, and the average daily check.
Be sure to provide sources for submitted work.
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