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Profit & Loss account

The profit and loss account is a statement of operating revenue and expenses, again per quarter. The difference with the cash flow analysis is that loans, capital, guarantees and investments are not included as such. Investments in capital goods are spread out by amortization. This means that each time a portion of the amount invested is recorded, until the entire investment paid off.

A simple profit and loss account is as follows:

Profit & Loss account
Other Income
Costs of goods sold
Gross Margin = (sales - costs of goods sold) / sales
Marketing $ Sales
Warehousing and logistics
Distribution & Retail
Lease and Rent
Other Costs
Operating profit/loss = revenues - expenses (EBITDA)
Depreciation and amortisation
Interest payments
Special costs / benefits (reservations)
Profit / loss before tax
Income tax
Net profit / loss (after tax)

If you provide profit forecasts or return on investment for investors, these are always based on Net Profits after Tax, unless explicitly stated otherwise.