Read the Numbers: Build an Income Statement for Maple Lane Bakery

SubstitutePlans.com
Business and Personal Finance · Business / Marketing / Entrepreneurship
SP-BUS-002 · Free to print and use in your classroom · substituteplans.com
Page 2
Read the Numbers: Build an Income Statement
for Maple Lane Bakery
Business and Personal Finance · Business / Marketing / Entrepreneurship · Grades 10-12 · 50 minutes
Time needed
50 minutes (one class period)
Prep
Copy the 2-page worksheet (one per student). Calculators are optional.
Technology
Optional: basic calculators.
Student
independence
High. Students work alone with a partner check at the end.
Copies to make
One 2-page worksheet per student
Materials
Pencils, Worksheet, Calculators (optional)
Goal for today: Students will build a simple income statement from provided data and calculate gross profit, net
income and net profit margin.
Before the bell
☐ Copy the worksheet, one per student (2 pages).
☐ If calculators are available, set them out. Students can also work by hand.
☐ Keep the answer key on your desk. No accounting background is needed.
Say this to start
Today you are the bookkeeper for a small fictional bakery. You will take one month of records, sort them into an
income statement, and find out whether the bakery made money. Take your time with the arithmetic and show your
work in the boxes.
Run of show
Minutes
What you do
What students do
0–5
Take attendance. Hand out the worksheet and read the
directions and the Key Terms box aloud.
Follow along and underline each term.
5–12
Walk students through the record table: the three groups
are revenue, cost of goods sold and operating expenses.
Read the table and ask questions.
12–32
Tell students to complete questions 1–6 (the October
income statement). Calculators are optional.
Add, subtract and show work.
32–44
Tell students to complete questions 7–10 (November and
error analysis).
Compare months and explain the mistake.
44–48
Read the answers aloud. Students check and fix their work.
Correct mistakes in another color.
48–50
Collect the worksheets.
Hand in the worksheet.
If things go wrong
• If students cannot tell which group an item belongs in: the table is already grouped by headings, so they only
need to add each group.

SubstitutePlans.com
Business and Personal Finance · Business / Marketing / Entrepreneurship
SP-BUS-002 · Free to print and use in your classroom · substituteplans.com
Page 3
• If a student gets a different net income: have them recheck each subtotal first, because one wrong addition
affects the later answers.
• If students ask whether this is real: the bakery and numbers are made up for practice.
• If the room gets loud, move to silent work for five minutes.
Early finishers
• Write two things the bakery could do to raise its net income next month.
• Make up a small income statement for a business you would like to run, with at least six lines.
• Explain in one sentence why revenue is not the same as profit.
Support and challenge
• Support: Provide a calculator and have students circle each group before adding.
• Challenge: Ask students to find what percent of October revenue went to wages.
Notes for the teacher (you fill this in)
Jot a few lines before you leave. A full Daily Sub Report is in the free Sub Survival Kit at SubstitutePlans.com.
How far the class got / what to pick up next:
Students who were especially helpful:
Anything the teacher should know: