Annual Income Statement: [Your Business Name]
For the Year Ending December 31, 2025
| Category | Amount |
| Total Revenue (Total Commissions Earned) | $500,000 |
| Cost of Goods Sold (COGS) | |
| Referral Fees & Split Commissions | ($80,000) |
| Gross Profit | $420,000 |
| Operating Expenses | |
| Marketing & Lead Generation | ($60,000) |
| Office Lease & Utilities | ($36,000) |
| Software & CRM Subscriptions | ($12,000) |
| Professional Services (Legal/Accounting) | ($10,000) |
| Salaries & Payroll Taxes | ($150,000) |
| Travel & Client Entertainment | ($12,000) |
| Total Operating Expenses | ($280,000) |
| Operating Income (EBITDA) | $140,000 |
| Interest & Taxes | ($35,000) |
| Net Income (Bottom Line) | $105,000 |
The “Cheat Sheet” Formulas:
-
Gross Profit: $Revenue – COGS$
-
Operating Income: $Gross Profit – Operating Expenses$
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Net Income: $Operating Income – Taxes/Interest$
Note: In real estate, your “COGS” are usually the commissions you pay out to other agents or brokers. Your “Expenses” are the costs of keeping the lights on and the phone ringing.