How to Calculate Snow Cone Profits

Snow cones can be a profitable product.

During the summer -- or if you live in a warm climate -- one good way to make money is by selling snow cones. Since snow cones are a cold treat, they are ideal foods to sell on a warm day. However, if you want to stay in business, you need to calculate your profitability. Your profit is the amount of money you make selling your snow cones minus any expenses. If the profit is positive, you earned money; if it is negative, then you lost money.

Instructions

1. Add all of the money you made selling snow cones. These are your gross receipts. For example, suppose you made $50 in one week selling snow cones at a small snow-cone stand.

2. Add any money you spent selling the snow cones. These are your expenses. The main snow-cone expenses will come from any employees you have and the cost of goods sold. In this example, to sell the $50 worth of snow cones, it cost you $25 for products and no expenses for employees, because you ran the snow-cone stand yourself.

3. Subtract your expenses from your gross receipts to calculate your profits. Your gross receipts are the total money you received from customers. In the example, $50 minus $25, equals $25 in profits.

Tips & Warnings

• The $25 profit is what you end up with in your pocket. But, if you want to stay in business, you need to reinvest your profit to buy more snow-cone ingredients.

References

• Accounting Coach: Income Statement (Profit and Loss Statement)