How to prepare a report with positive net profit?

(1) One-step income statement In the one-step income statement, first of all, all the income, expenses and expenses of the enterprise in a certain period should be summarized separately, and then the current net profit or profit after income tax is obtained by subtracting them.

(2) Multi-step income statement

The multi-step income statement divides the contents of the income statement into multiple categories. The multi-step income statement starts with the total sales, and shows the operating results of the enterprise and its influencing factors in the following steps:

Step 1: Reflect the net sales, that is, the total sales minus sales returns and discounts and the balance after sales tax.

Step 2: Reflect the gross sales profit, that is, the balance of net sales minus sales cost.

Step 3: Reflect the sales profit, that is, the balance of total sales profit minus sales expenses, management expenses and financial expenses.

Step 4: Reflect the operating profit, that is, the balance after sales profit plus other business profits.

Step 5: Reflect the total profit, that is, the balance of operating profit plus (minus) net investment income, non-operating income and expenditure, and the cumulative impact of changes in accounting methods on previous profits and losses.

Step 6: Reflect the profit after income tax, that is, the balance after deducting the accrued income tax (expenditure) from the total profit.

One-step income statement and multi-step income statement are compiled in different ways, and they have their own advantages and disadvantages for different reasons:

One-step income statement is relatively simple, and because this format treats all income, expenses and expenses equally, regardless of their sequence, it can avoid people mistakenly thinking that the proportion of income and expenses is sequential. Its disadvantage is that some meaningful intermediate information, such as sales gross profit, operating profit and total profit, is not directly reflected, which is not conducive to the comparison of corresponding projects in different enterprises or the same enterprise in different periods.

Multi-step income statement classifies income, expenses and expenses, lists some intermediate profit indicators, and reflects the calculation process of current net profit step by step, which can provide more information than one-step income statement, and is helpful for the comparative analysis of corresponding projects in different enterprises or the same enterprise in different periods. The multi-step income statement is difficult to understand, and it is easy to misunderstand the sequence of income and expenses. The classification and step-by-step of income, expenses and expenses are inevitably subjective.