Create a simple Profit and Loss Statement for the first two years of your dream company following the income statement format. (This is to be created from scratch for the first two years of your own company, do not copy a company from the internet).

1. Explain how you calculated revenue for year one (I want to see the numbers you use) and then explain how it changes for year two.
2. Explain how cost of goods sold (if required, service companies may not have COGS), and operating expenses (list all the accounts you use for expenses) are calculated for year one and explain changes for each account in order to report the year two numbers.

Analyze the revenue items based on information collected and make adjustments. The start for your income statement is calculating revenue.