Do I substract the price for stuff i buy in a restaurant PnL and only use COGS?

-When I buy goods that I will be selling in my restaurant (as food and beverage), do I substract their prices in my PnL? Say, my initial bank is $10. I am buying ingridients to make a cake. They cost me 5$, plus $2 as fixed/variable costs. I make the cake and I sell it for $10. Will my pnl look like this?



Initial sum: $10



Revenue: $10

COGS: $5



Gross: $5

COSTS:

Materials for the cake (car cost) which i took from my bank: $5

Labor: $2

Tax: $0



NET: $-2



According to my PnL I ve made a loss

But

End sum in my bank is: $13



What am I doing wrong?



Please comment on my logic! :)