Example Income Statement
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Hilltop Fertilizer, Inc. Income Statement --Year Ended December 31, 1996

Sales								$1,000,000
Costs of goods sold						   750,000
Gross margin							   250,000

Operating expenses
	Salaries and wages, including benefits		  75,000
	Local taxes, licenses				   5,000
	Insurance					   6,000
	Depreciation					  20,000
	Rent and lease					   7,000
	Advertising and promotion			   5,000
	Office expense					   2,000
	Utilities					   3,000
	Maintenance and repair				  17,000
	Bad-debt loss					   2,000
	Supplies					   4,000
	Other						   4,000
		Total operating expense				    150,000

Net operating profit					 100,000
Interest expense					  15,000
Other nonoperating income				   5,000

Net profit before taxes						     90,000
Profit taxes							     40,000
Net profit after taxes						$    50,000



Source: Downey, W.D. and S.P. Erickson, Agribusiness Management, McGraw-Hill, Inc.
New York, NY, 1987.