The request
“Create a waterfall chart titled Harbor Market May Profit Bridge showing Revenue $84,000, Cost of goods minus $33,000, Payroll minus $24,000, Rent minus $8,000, Marketing minus $4,000, and Net profit $15,000.”
Then tryChange Marketing to minus $6,000.Add Delivery fees minus $2,000 before Net profit.
What is in this drawing
Read the decisions behind it.
01Starting point
Revenue establishes the available gross inflow.
02Largest reduction
Cost of goods is the biggest expense.
03Final result
Net profit remains after operating costs.
Use when a starting value changes through named additions or deductions.
More like this
Other examples in this family.
FAQ
Common questions
What is a waterfall chart?
It shows how a starting total changes through a sequence of increases and decreases to reach an ending total.
Why use one for profit?
It makes the contribution of each cost or revenue change visible in the path to profit.
Should the ending total be included?
Yes. The final total gives the sequence a clear result to reconcile against.