【正文】 S EA T R AVEL , I NC.Inc om e S tat em en tM on th En de d A pril 30 , 2 00 1Rev en ue :Se rvic e re ve nu e $8 ,50 0Ex pe ns es :Sa lary ex pe ns e $1 ,20 0Ren t e xp en se 1 ,10 0Util itie s 40 0 To tal ex pe ns es 2 ,70 0 Net In co me $5 ,80 0 INCOME STATEMENT ? Revenues are – Increases in retained earnings from delivering goods or services to customers or clients ? Expenses are – Decreases in retained earnings that result from operations INCOME STATEMENT ? Expenses include – Cost of goods sold (cost of sales) ? The cost of the goods that a pany sold to its customers – Operating expenses ? The costs of operating the business INCOME STATEMENT ? Operating expenses – Advertising ? The cost to promote the pany’s products – Depreciation ? The expense of using panyowned buildings, equipment, and furniture – Other operating expenses ? The costs of salaries, utilities, rent, and supplies – Interest expense ? The cost of borrowed money INCOME STATEMENT STATEMENT OF RETAINED EARNINGS ? The statement of retained earnings reports that portion of ine the pany has retained, or kept for use in the business – Net ine increases retained earnings – Dividends paid to stockholders decrease retained earnings STATEMENT OF RETAINED EARNINGS A I R amp。s normal operating cycle if longer than a year ? Current assets include – Cash – Accounts receivable – Merchandise inventory – Prepaid expenses ASSETS ? Longterm assets are – Those assets which the pany expects to hold longer then the next 12 months or the business’s normal operating cycle if longer than one year ? Longterm assets include – Property – Equipment ASSETS ? Intangible assets are – Those with no physical form ? Trademarks ? Patents ? Other assets are – Those with small values which do not fall within any other standard asset category LIABILITIES ? Current liabilities are – Debts payable within one year or within the business’s normal operating cycle if longer than a year ? Current liabilities include – Notes payable, short term – Accounts payable – Accrued expenses payable – Ine taxes payable LIABILITIES ? Longterm liabilities are – Debts not payable within one year or within the business’s normal operating cycle if longer than a year ? Longterm liabilities include – Notes payable, long term – Bonds payable OWNERS’ EQUITY ? Owners’ equity –Represents the shareholders’ ownership of the assets of the business ? Owners’ equity of a corporation consists of – Common stock – Retained earnings STATEMENT OF CASH FLOWS ? The statement of cash flows reports the pany’s cash inflows and outflows from operating, investing, and financing activities A I R amp。 SE A T R A V EL , IN C .St at em en t o f R et ain ed E arn in g sM o n t h En d ed A p ri l 30 , 200 1