Profit and Loss Statement, Lesson Plan, Sample, Example Worksheet

TEACHING AND LEARNING PROFIT AND LOSS BUSINESS MATH WORKSHEET LESSON PLAN - SAMPLE INCOME STATEMENT EXAMPLE FORMAT READING BASICS UNDERSTANDING TEMPLATE FORM ACCOUNT P&L ACCOUNTING ACTIVITY

PROFIT AND LOSS STATEMENT LESSON

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Teach and learn about the profit and loss statement, or income statement. Understand the main income and expense items on a basic P&L and how they are calculated. Learn basic financial formulas and calculations.

LESSON LEARNED

Reading the Profit and Loss Statement

SKILLS REINFORCED

Business Math Percentages

GRADE LEVELS

7+

Secondary Education

Adult Education

Investor Education

LESSON FOR THIS WORKSHEET

A profit and loss statement, also known as a P&L, or income statement, gives a measurement of the activity of a business over some period of time, including a month, quarter, or a year.
The P&L is important, because it tells the profitability of a business The profit and loss statement's main items are revenue, expenses, and profit (or loss).
The basic format (template) is:

REVENUE
   - cost of goods sold
= GROSS PROFIT
   - operating expenses
= OPERATING INCOME
   +/- other income or expenses
= EARNINGS BEFORE TAXES
   - income taxes
= NET EARNINGS

DEFINITIONS:

REVENUE is compensation received for your product or services.

COST OF GOODS SOLD are the variable expenses related to the sale of your product.

OPERATING EXPENSES are fixed expenses, such as rent, and utilities.

OPERATING INCOME is profit after operating income.

EARNINGS BEFORE TAXES is income including other income and expenses, but before taxes.

INCOME TAXES are federal, state, and local taxes.

NET EARNINGS is the profit earned by the business, and it includes all expenses, including taxes.

WORKSHEET INSTRUCTIONS

This worksheet gives students practice understanding the items on a profit and loss statement, or income statement. A random worksheet is generated, along with identification questions. Students are to calculate the missing items and answer the questions based on the given profit and loss statement.

Press "get worksheet" and a new window will open with a new random worksheet. Each time you press "get worksheet", a new worksheet will be generated, so be sure to print and save the answer sheet for future reference.

WORKSHEET

LEVEL 1:

BASIC WORKSHEET

Fill in the missing values on the profit and loss statement.

Students should calculate gross profit, operating expenses, operating income, earnings before taxes, and net earnings with the information given.

Note - Requires FULL Membership

LEVEL 2:

BASIC WORKSHEET WITH QUESTIONS

Fill in the missing values on the profit and loss statement, then answer the word problem questions.

Students should calculate gross profit, operating expenses, operating income, earnings before taxes, and net earnings with the information given. Then answer the questions based on the given profit and loss statement.

Note - Requires FULL Membership