Question

Function for income statement for the business

Answer 1

Creating an income statement function involves defining how to calculate and present the income statement for a business. The income statement summarizes revenues, expenses, and profits over a specific period. Below is a simplified example of how you might implement this function in Python.

### Income Statement Function in Python

```python
class IncomeStatement:
def __init__(self, revenues, expenses):
self.revenues = revenues
self.expenses = expenses

def calculate_net_income(self):
total_revenues = sum(self.revenues)
total_expenses = sum(self.expenses)
net_income = total_revenues - total_expenses
return net_income

def generate_statement(self):
total_revenues = sum(self.revenues)
total_expenses = sum(self.expenses)
net_income = self.calculate_net_income()

statement = f"Income Statement\n"
statement += f"{'-' * 30}\n"
statement += f"Total Revenues: ${total_revenues:,.2f}\n"
statement += f"Total Expenses: ${total_expenses:,.2f}\n"
statement += f"{'-' * 30}\n"
statement += f"Net Income: ${net_income:,.2f}\n"

return statement

# Example Usage
revenues = [15000, 12000, 18000] # List of revenues
expenses = [8000, 5000, 4000] # List of expenses

income_statement = IncomeStatement(revenues, expenses)
print(income_statement.generate_statement())
```

### Explanation of the Code

1. **Class Definition**: We create a class `IncomeStatement` that takes revenues and expenses as input.

2. **Constructor**: The `__init__` method initializes the attributes for revenues and expenses.

3. **Net Income Calculation**: The method `calculate_net_income` calculates the net income by subtracting total expenses from total revenues.

4. **Statement Generation**: The `generate_statement` method formats an income statement, summing revenues and expenses and displaying them neatly.

5. **Example Usage**: We create an instance of `IncomeStatement` with example revenues and expenses, and print out the generated statement.

### Note
This is a basic implementation. In a real-world application, you might want to expand this to include different categories of revenues and expenses, tax calculations, earnings per share, and other financial metrics.