Difference in Merchandise & Service Income Statements. The primary difference between a merchandising and a service-based business is the presence of inventory. ... For example, suppose your ...

Using the previous example, because merchandise returns reduced net sales by $4,000, your small business's gross profit and net profit are also $4,000 lower. Potentially Misstated Revenue and Profit ...

Income statements for each type of firm vary in several ways, such as the types of gains and losses experienced, cost of goods sold, and net revenue. Merchandising Company ...

In the pizza parlor example, the revenue in the income statement represents all the money earned from sales of all food and drink for each year. Revenue in year one totaled $300,000 and in year ...

The income statement is a simple and straightforward report on a business’ cash-generating ability. It’s an accounting scorecard on the financial performance of your business that reflects ...