The purpose of this condensed statement is to provide the planners with a tool to project the credit union’s net operating results for the current and planned year and the impact on the credit union’s future net capital position. The Income Statement presents the major elements of credit union operations, (i.e. loan interest income, investment interest income, other operating income, member dividends and interest on borrowed money, operating expenses, provision for loan losses and other non-operating income or loss.
The statement presents the information in dollars and percentages. The net income percentage (ROA) can be compared to the long-term (ROA) objective (Growth Chart) to determine if the projected ROA for the current and plan year support the credit union’s long term objective. Hopefully, the operating results expressed in the projected income statement produce the equity position the credit union wants to achieve from the G sheet.
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