1. IN C O M E
S TA TE M E N TS
A g B u s in e s s
Ma na g e me nt
Original PowerPoint Created by
S p r i n g 19 9 9
Mike White
Modified by
Georgia Agricultural Education
Curriculum Office
June, 2002
2. How do you measure
performance?
a Your school work
a Basketball team
a Restaurant
a Greenhouse
3. Objectives
a Describe the importance of income
statements.
a Identify sources of revenue and expenses.
a Given a list of transactions, categorize
revenues and expenses.
4. Importance of an Income
Statement
a Did the business end the year with
a profit or loss?
a How much was the profit/loss?
5. Uses of Income Statement
a Summarize revenues & expenses
a Determine profit/loss
a Explain changes in owner equity
6. Uses of Income Statement
a Calculate financial measures
a Support loan application
7. Summary of Revenue & Expenses
a Revenue = cash receipts from
product sales or dividends on
interest income.
• Short or long term asset sales
• Inventory adjustments
8. Examples of Revenues
a Cash Revenues
• Cash sales
• Government payments
• Custom work receipts