How do i prepare the income statement for the cafe when i don't have the revenue
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3 stepsYou do have the revenue for the cafe. The "Receipts from Cafe" of M 5650 is the revenue generated by the cafe for the year.
To prepare an income statement for the cafe, you would use this revenue and subtract the cost of goods sold (Cost of Cafe Sales) to find the gross profit.
Identify Cafe Revenue.
- The revenue for the cafe is the "Receipts from Cafe" given in the original problem.
Identify Cost of Cafe Sales.
- From the previous calculation, the Cost of Cafe Sales was determined as:
Prepare the Cafe Income Statement.
Assuming no other direct expenses are attributable solely to the cafe (like specific cafe wages or rent), the income statement would look like this:
\begin{align*}
Revenue (Receipts from Cafe) && M 5650 \ Less: Cost of Cafe Sales && M 5045 \ Gross Profit from Cafe && M 605
\end{align*}
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