A. Income statement,
Statement which shows the final performance of the business(i.e which shows if the business has made profit or loss)

• To have sense for how well the business is operating.You do this :
• Start with sales
• Subtract the sales return(goods returned from the customer)
• Then you get net sales (sales - sales return)
• Opening stock
• Purchases(number of product which are available for selling or at the beginning of an accounting period)
• Subtract purchases returned ( goods returned to the supplier)
• Then you get cost of good available for sale(Opening stock- net purchase[purchases - purchases return])
• Then you get cost of sale (cost of good available for sale - closing stock)
• Then we have gross profit [+] or gross loss[-] (net sales - cost of sale)
• Add income
• Then we get gross income (gross profit/loss + total income)
• Add expenses
• Then we get net profit[+] or loss[-] (gross income - total expenses)
• After this calculation you will be able to know if you have made profit/loss and look for other alternatives in case it is not going well as you planned.