Sample Profit & Loss Statement
The organization of the income statement is important. For example, all direct selling expenses should be grouped together and not shown as part of other operating expenses. That is because the direct selling expense to sales ratio is critical, typically ranging from 25% to 35% for consumer catalog companies and approximately 20% for business-to-business catalogers. See how your ratios compare with our industry ratios. These ratios will vary by company.
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B-TO-B |
CONSUMER * |
|
Total Gross Merchandise Sales |
97.50% |
106.00% |
|
Less: Returns & Allowances |
-2.50% |
-6.00% |
|
Net Sales |
100.00% |
100.00% |
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Less: Cost-of-Goods |
48.00% |
40.00% |
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Gross Margin |
52.00% |
60.00% |
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Direct Selling Expenses: |
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Creative/Preperation |
1.50% |
3.06% |
|
Print and Paper; Ink-Jet Address |
7.00% |
8.30% |
|
Postage |
5.00% |
11.60% |
|
List Rental |
1.00% |
2.71% |
|
Merge/Purges |
0.75% |
0.30% |
|
Internet Marketing |
3.00% |
3.50% |
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Total - Direct Selling |
18.25% |
29.47% |
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Operating Expenses: |
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|
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Packing Materials |
0.65% |
1.50% |
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Outbound Freight |
5.00% |
9.60% |
|
Shipping & Handling Revenue |
-6.00% |
-14.85% |
|
Telephone Line Charges |
1.00% |
2.10% |
|
Salaries and Wages |
1.00% |
10.60% |
|
Total Payroll Taxes |
1.00% |
1.00% |
|
Total Employee Benefits |
1.00% |
1.60% |
|
Credit Card Fees |
.25% |
3.00% |
|
Rent |
1.25% |
2.40% |
|
Depreciation |
0.50% |
0.80% |
|
Utilities |
0.50% |
0.60% |
|
Insurance |
0.25% |
0.30% |
|
Equipment Rentals |
0.75% |
0.50% |
|
Maintenance & Repairs |
0.60% |
0.35% |
|
Dues, Fees and Subs |
0.15% |
0.04% |
|
Professional Fees |
0.80% |
2.50% |
|
Office Postage |
0.80% |
0.19% |
|
Supplies |
0.80% |
0.40% |
|
Travel and Entertainment |
0.50% |
0.30% |
|
Other G&A Expenses |
1.00% |
1.10% |
|
Interest Expenses |
0.50% |
1.80% |
|
Total - G&A Expenses |
12.30% |
25.83% |
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|
|
Total S.G.& A. Expenses |
30.55% |
55.30% |
|
Operating Income (loss) |
21.45% |
4.70% |
|
Net LIst Rental Income |
0.50% |
1.00% |
|
Income (loss) - EBIT |
21.95% |
5.70% |
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* Non-Apparel |
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