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heres how to build an income statement total up your revenues for the year subtract out your cost of goods sold and the resulting number is your gross profit but dont forget about all the other expenses like payroll rent advertising and office when you subtract your general and administrative expenses from your gross profit the remaining number is your net income for additional analytics calculate the percentage of each expense divided by revenue and that will show you exactly where every single dollar in your business goes if youre happy with the net income and congratulations youve got yourself a nice profitable business
