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    Cheat sheet for income statement

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    Basic Cheat Sheet for Understanding an Income Statement. Included formulas for Break Even Point, Revenue, Safety Margin, Leverage and sample income statement.

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    https://brainmass.com/business/income-statement/cheat-sheet-income-statement-420173

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    Formulas and Concepts
    Break Even Point: Sales=Variable Expenses+Fixed expenses+Profit, Break Even Point in Units=Fixed expenses/unit CM, Break Even in Revenue = fixed expense/CM ratio, unit CM= CM/units
    Safety Margin=Sales-Break Even Point, CM Ratio= CM/Total Sales, Incremental CM= Increased sales*CM Ratio, Operating Leverage=CM/net operating income, Multiply operating leverage by projected sales increase to determine how much income will increase.

    Given

    Purchase of raw materials
    Raw materials inventory, Jan 1
    Raw materials inventory, Dec 31
    Depreciation, factory
    Direct labor cost
    Maintenance, factory
    Administrative salaries (non factory)
    Sales
    Utilities, factory
    Supplies,factory
    Selling expenses
    Indirect labor
    Depreciation, selling
    Other factory overhead
    WIP, Jan 1
    WIP, Dec 31
    Finished goods inventory, Jan 1
    Finished goods inventory, Dec 31

    1) Schedule of costs of goods manufactured for specified year.

    Direct Materials:
    Raw materials, Jan 1
    Add ...

    Solution Summary

    Cheat sheet for income statement, includes formulas for key line items for quick reference.

    $2.49

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