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Below is a list of concepts related to an income statement along with the equations you ll need to calculate the metrics yourself.
Income statement how to calculate. If revenue is higher than expenses the company is profitable. The p l formula is revenues expenses net income. This is a simple equation that shows the profitability of a company. The income statement is also referred to as the statement of earnings or profit and loss p l statement.
If revenue is lower than expenses the company is unprofitable. Gross profit revenue cost of goods sales. The following 3 equations are used to calculate and generate an income statement. Gross margin gross profit revenue research and development r d to sales r d expense revenue.
The income statement is used to calculate the net income of a business.
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