Accounting and Accounting Information MY PROGRESS - 62% EO Decision Point: The Income Statement You explain the basic format of the income statement to Alex. When he sells a meal or a drink in his restaurant, he receives revenues -- funds that flow into his business from the sale of goods or services. On the income statement, he then needs to subtract the cost of revenues (or cost of goods sold) -- the cost to his restaurant of the food and beverages it sells. When he subtracts the cost of revenues from revenues, the result is his gross profit. He then needs to subtract his operating expenses. These are expenses incurred in running the restaurant, such as utilities, insurance, payroll, cleaning supplies, and the like. Alex also needs to then subtract approximated taxes in order to arrive at his net income. Consider the items shown below and drag them to the appropriate section of the income statement template. Laundry service Revenues (Gross Sales) Cost of Revenues Operating Expenses Purchase of wine Mortgage payment Purchase of eggs. dairy, and cheese Food/beverage sales Purchase of fruit and vegetables Accounting and Accounting Information MY PROGRESS-62% Statement template. EO Laundry service Revenues (Gross Sales) cost of Revenues Operating Expenses Purchase of wine Mortgage payment Purchase of eggs dairy, and cheese Food/beverage sales Purchase of fruit and vegetables Labor Replacement of glassware Business Insurance Air conditioning repair Purchase of meat/poultry Monthly utilities