Direct Costs
Direct costs are the expenses directly related to the services provided by the travel agency. Examples of direct costs include airline commissions, hotel commissions, transportation costs, and tour package costs. These costs should be estimated based on historical data, industry benchmarks, and any contracts with suppliers.

Indirect Costs
Indirect costs are the expenses not directly related to the services provided by the travel agency. Examples of indirect costs include rent, utilities, salaries, marketing expenses, and office supplies. These costs should also be estimated based on historical data and industry benchmarks.

Gross Profit
The gross profit is calculated by subtracting the direct costs from the revenue. This will give an idea of the profitability of the travel agency's core business operations.

Operating Expenses
Operating expenses are the indirect costs of the travel agency. These expenses should be subtracted from the gross profit to arrive at the operating profit.

Taxes and Net Income
The final step is to deduct taxes and other expenses such as interest and depreciation to arrive at the net income. This will give an idea of the profitability of the travel agency after all expenses have been considered.

Balance Sheet
The balance sheet is a statement that summarizes the assets, liabilities, and equity of the travel agency. It provides a snapshot of the financial position of the business at a particular point in time. The assets should include cash, accounts receivable, and fixed assets such as office equipment and furniture. The liabilities should include accounts payable and any loans or debts owed by the travel agency.

Cash Flow Statement
The cash flow statement provides information about the inflows and outflows of cash in the travel agency. It helps the management to understand the cash flow position of the business and to plan for future cash needs.