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  2. Financial Statements for a Merchandising Company The statement of owner's equity and the statement of cash flows are the same for merchandising and service companies. Except for the inventory account, the balance sheet is also the same. But a merchandising company's income statement includes categories that service enterprises do not use.
    www.cliffsnotes.com/study-guides/accounting/acco…

    SAMPLE: Financial Statements for a merchandising business Statement of Profit or Loss (Functional form) Note Net sales revenue 1 P 960, Cost of sales 2 -529, Gross profit P 431, Other income 3 18, Total income P 449, Expenses Distribution costs 4 P 123, Administrative costs 5 192, Finance cost (Interest Expense) 11,230 -327, Net income P 122, Argem, Capital, January 1 P 600, Net income 122, Sub-total P 722, Argem, Drawing -25,...

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