Income Statement Other Items

For example during the year the company make revenue usd500 000 cost of sales usd300 000 and other income usd5 000 then the extract p l of the company is as following.

Income statement other items. The income statement comes in two forms multi step and single step. Cogd 300 000 gross profit 200 000. The income statement summarizes a company s revenues and expenses over a period either quarterly or annually. Discover the top 10 types each of these statements will impact the values of the other statements.

For example revenues from hotels restaurants gaming etc. Other income 1 000. You will see that the revenues are a very important number in that it drives the whole model. This will be true for any valuation model that you do.

While the balance sheet constitutes a financial snapshot at a given point in time such as december 31 the income statement summarizes a financial movie of operational results over a period of time such as for the year ending december 31. Below is a video explanation of how the income statement works the various items that make it up and why it matters so much to investors and company management teams. Since the income statement only recognizes income and expenses when they are earned or incurred many other sources of revenue and expenses are left off the statement because they haven t been realized yet. Sales revenues is the combination of many sublines of sales revenues.

These concepts should also apply to other significant items in the income statement for example the cost of goods sold and administrative expenses. There are many things that will be a function of revenues either implicitly or explicitly. In income statement other income is presented after the other gross profit. In this video we want to deal with each of the other items that we have on the income statement.