| Common Size Income Statement for the years ended March 31, 2016 and 20174 |
| Particulars | Note No. | 2015-16 (₹) | 2016-17 (₹) | Percentage of Sales |
| 2015-16 | 2016-17 |
| 1. Revenue from Operations | | 6,00,000 | 8,00,000 | 100 | 100 |
| 2. Other Income | | 10,000 | 12,000 | 1.67 | 1.5 |
| 3. Total Revenue (1 + 2) | | 6,10,000 | 8,12,000 | 101.67 | 101.5 |
| 4. Expenses | | | | | |
| a. Cost of Revenue from Operations (COGS) | | 4,28,000 | 7,28,000 | 71.33 | 91 |
| b. Other Expenses | | 43,000 | 18,000 | 7.17 | 2.25 |
| Total Expenses | | 4,71,000 | 7,46,000 | 78.5 | 93.25 |
| 5. Profit before Tax (3 – 4) | | 1,39,000 | 66,000 | 23.167 | 8.25 |
| Less: Income Tax | | (41,700) | (19,800) | 5.35 | |
| 6. Profit After Tax | | 97,300 | 46,200 | 16.22 | 5.775 |
| | | | | |
Working Notes:
1. Calculation of expenses
Other Expenses = Indirect Expenses = % of Gross Profit
Gross Profit = Net Sales −- Revenue from Operations
For 2016, Gross Profit = ₹(6,00,000 −- 4,28,000) = ₹1,72,000
For 2017, Gross Profit = ₹(8,00,000 −- 7,28,000) = ₹72,000
2016=1,72,000×25%=₹43,000
2017=72,000×25%=₹18,000
2016=1, 72,000×25%=₹43,000
2017=72,000×25%=₹18,000