Income Statement

HEMS - Hotel Manager

Income Statement

Overview

An Income Statement is a key financial document that summarizes a company's revenues and expenses over a specific period, typically a quarter or a year. It provides insights into the company's profitability and financial performance.

Fields

• Start Date: Enter the start date for the period you want to generate the income statement for. The format should be mm/dd/yyyy.
• End Date: Enter the end date for the period you want to generate the income statement for. The format should be mm/dd/yyyy.
• Submit: Click this button to generate the income statement based on the specified date range.

Table Columns

Once the income statement is generated, the results will be displayed in a table with the following columns:

• Item/Description: The name or description of the revenue or expense item.
• Debit: The total debit amount for the item.
• Credit: The total credit amount for the item.

Components

1. Revenues: The total amount earned from sales and other income sources.
2. Expenses: The costs incurred in the process of earning revenue, including operating expenses, cost of goods sold, and other expenses.
3. Net Income: Calculated as Revenues minus Expenses. This represents the company's profit or loss for the period.

Usage

1. Enter Dates: Input the start and end dates for the period you want to analyze.
2. Submit: Click the Submit button to generate the income statement.
3. Review Table: The table will display the revenue and expense items with their respective debit and credit totals. If no entries are available, the table will show "Table is Empty."

Importance

The Income Statement is essential for:

• Profitability Analysis: Understanding how much profit or loss the company has generated over a specific period.
• Financial Planning: Making informed decisions about budgeting, investments, and cost management.
• Investor Relations: Providing stakeholders with a clear picture of the company's financial health and performance.

Example

Item/Description	Debit	Credit
Sales Revenue		50,000
Cost of Goods Sold	20,000
Operating Expenses	10,000
Net Income		20,000

In this example, the total revenues (50,000) minus the total expenses (30,000) result in a net income of 20,000, indicating profitability for the period.

Ensure all entries are accurate and complete before finalizing the income statement to maintain the integrity of your financial records.