An Income Statement Shows A Firm S Revenue Costs And Profit

100 000 net income.

An income statement shows a firm s revenue costs and profit. It summarizes all of the resources that have come into the firm revenue all of the resources that have left the firm and the resulting net income. A manufacturing firm u2019s income statement shows cost of sales of 50 000 administrative expenses of 20 000 rental expenses of 5 000 interest revenue of 20 000 interest expense of 15 000 and net income after taxes of 60 000. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement. An income statement or profit and loss account also referred to as a profit and loss statement p l statement of profit or loss revenue statement statement of financial performance earnings statement statement of earnings operating statement or statement of operations is one of the financial statements of a company and shows the company s revenues and expenses during a particular period.

700 000 revenue 200 000 cost of goods sold. What is an income statement. 500 000 gross profit 400 000 other expenses. Revenue left over after all costs and expenses including taxes are paid.

Revenue is the total amount of income generated by a company. Net income or net loss. A profit and loss statement p l or income statement income statement the income statement is one of a company s core financial statements that shows their profit and loss over a period of time. The income statement also called the profit and loss statement is a report that shows the income expenses and resulting profits or losses of a company during a specific time period the income statement is the first financial statement typically prepared during the accounting cycle because the net income or loss must be calculated and carried over to the.