Income Statement Other Operating Income

Only 22 of the 16 000 companies in our bloomberg sample reported other operating income.

Income statement other operating income. Cogd 300 000 gross profit 200 000. Other income and expenses. We can see that operating income is the result of gross income or gross margin on apple s income statement of 20 2 billion minus operating expenses of 8 6 billion. Other income 1 000.

Indeed retailers tend to generate other operating income in excess of 14 of total operating income as shown in figure 69. While computing operating revenue other income comprising of return for using entity s resource by other entities like royalty interest and dividend are included in the income statement after operating profit is computed. Image by sabrina jiang. The income statement is one of a company s core financial statements that shows their profit and loss over a period of time.

The median average equated to 10 of operating income. 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. The multiple step profit and loss statement segregates the operating revenues and operating expenses from the nonoperating revenues nonoperating expenses gains and losses. The profit or loss is determined by taking all revenues and subtracting all expenses from both operating and non operating activities this statement is one of three statements used in both corporate finance including financial modeling and accounting.

The entire disclosure for other income or other expense items both operating and nonoperating. Interest expense interest income and other non operational revenue sources are not considered in computing for operating income. Similarly non operating profit or gain and loss like fair value gain loss on held for trading investments and. Sources of nonoperating income or nonoperating expense that may be disclosed include amounts earned from dividends interest on securities profits losses on securities net and miscellaneous other income or income deductions.

An alternative to the single step income statement is the multiple step income statement because it uses multiple subtractions in computing the net income shown on the bottom line. In income statement other income is presented after the other gross profit.