1. How much money you brought in during the month. (the revenue): This is from selling cups of lemonade to people.
2. How much it cost you to make lemonade and sell it: (the actual business expenses) This includes the lemons, sugar, cups, and anything else you needed to make the lemonade.
3. How much money you have left at the end of the month after paying for everything: If you made more money than you spent, that’s called a profit. If you spent more money than you made, that’s called a loss.

Lemonade Stand – Sample Profit and Loss Statement

1. All Money Brought in from Lemonade Sales: $500
2. Money Spent on Lemonade Ingredients and Supplies: (actual business expenses) Lemons, Sugar, Cups, Ice, Other Supplies: $100
3. Money Left After Paying for Lemonade Ingredients and Supplies (Gross Profit): Money brought in, subtract Money Spent on expenses $500 – $100 = $400 (profit)