Budget and Profit and Loss Statement
Purpose of Assignment
The purpose of this assignment is to allow students to gain the necessary knowledge to manage cost and determine project viability through capital budgeting techniques, so they can effectively minimize the cumulative error between the projected values and actual values over the relevant time horizon.
Note: The official term Income Statement is also known informally as Profit and Loss Statement.
Assignment Steps
Analyze the revenue items based on information collected and make adjustments as suggested by your instructor (see assume below).
Assume this is the first two years of your dream company, starting from scratch. (We will use this company next week to create a balance sheet and cash flow statement.) Explain how you calculated revenue, cost of goods sold (if required), and expenses for year one and changes for year two.
Create a simple Profit and Loss Statement for the first two years following the income statement format.
Conduct an internet search or use the example located in the textbook for the course. In Chapter 3, on page 38, in Table 3.2 you will find an example of a profit and loss statement or you can search the internet for an example.
Format assignment consistent with APA guidelines.
