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.
Create a 350-word Profit and Loss Statement following the income statement format.
Conduct an internet search or use the example located in the textbook for the course
Instructor notes
want to make sure everyone understands what is needed for our Week 4 assignment. What we need this week is for you to generate an income statement for a fictitious company that you might want to start (not a real company). You are to use a similar type company that you find on the internet as an example. You’ll see that the word count is very low that’s because the income statement itself does not count in the word count. What counts is an explanation of the how you got the main numbers, so that won’t be much verbiage. So it can’t be a real company and you need an explanation of how you arrived at the main numbers. It makes the most sense to do it for the first year of operations but that is just a suggestion. Hope this helps, as always, let me know if you have any questions.
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