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Microsoft Excel 1B: Income Statement: Cell Alignment, Adjust Columns, Currency, Autoformat

Overview

Income Statement :

  • An income statement is a document that details what a business has earned and all the expenses.
    • Example: a computer store makes sales to customers of hardware (eg. computers, monitors, external drives etc.) and software (eg. programs like Microsoft Excel, games etc.)
  • Gross Sales refers to the total of all sales of a business, this will be the total of the Hardware Sales and Software Sales in the diagram below.
  • When accountants prepare an income statement like the one below, they often put subtotals in a separate column, for example the total of Hardware Sales and Software Sales appears in the cell with the A in it below.

Figure 1B1

Joe's Computer Store
Income Statement
For Period Ending December 31, 200X
SALES
Hardware Sales
$150,000.00
Software Sales
84,523.45
Gross Sales
A
Sales Returns
5,203.65
Sales Discounts
4,704.55
B
Net Sales
C
  • Sales Returns are items that are returned by customers for any reason.
  • Sales Discounts are discounts given for volume purchases, special customers or special deals.
  • The total of Sales Returns and Sales Discounts appears in the cell with the B in the figure above.
  • Net Sales appears in the cell with the C in the figure above. Net Sales refers to Gross Sales less all the returns and discounts, this is the total of all the money, Interac transactions and credit card transactions collected for a particular time.
  • Note: you will complete the rest of the income statement in the assignment for this section. The assignment will also include some other items as described below.
  • Cost of Goods Sold: this is what all the software and hardware sold actually cost the store, remember stores buy merchandise from factories and sell them at higher prices for a profit.
  • Expenses: these are costs like wages, rent, utilities for the store etc.

Example: save time when entering formulas (e.g. =A3*B3)

Press the =

Click in cell A3

Press the *

Click in cell B3 and press Enter

(This is faster than keying the whole formula in from the keyboard, try using this method in your assignment).

Use of the $ in the Income Statement:

A $ should appear beside:

1. the first number in a series of numbers in a column

2. any number directly below an underline

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