Income Statement Builder
Build a complete miniature profit-and-loss statement from sales returns to net income.
Accounting puzzle
Loading accounting challenges…
Instructions, device progress and accessibility
Choose Easy, Normal, or Hard and select Practice or UTC Daily. Solve all accounting fields, then Check Answer. Hint and Undo mark a round as assisted. Progress stays on this device. All cases are fictional.
Local progress is checked when play begins.
How to play Income Statement Builder
Build a complete miniature profit-and-loss statement from sales returns to net income. Choose Easy, Normal or Hard, enter the numeric answers and use Check Answer. Practice and daily challenges are free.
Worked accounting example
Gross sales $12,000 minus returns $500 means net sales $11,500. Less COGS $4,000 is $7,500 gross profit. Less $2,000 overhead and $500 interest is $5,000 before tax. Less $1,000 tax is $4,000 net income.
Accounting formulas and common mistakes
Income statements subtract returns from gross sales, direct cost from net sales, overhead from gross profit, then interest and tax to arrive at net profit. Margin should use net sales.
All fictional amounts use US dollars for illustration only. Exercises are educational, not business, tax or investment advice.
Frequently asked questions
What is an income statement?
A financial report describing revenue, costs and profit over an accounting period.
Is gross profit the same as operating income?
No. Operating income also subtracts operating expenses from gross profit.