Income Statement Partial Example

Let s take a look at a multi step income statement example.

Income statement partial example. As you can see this multi step income statement template computes net income in three steps. This financial statement can also be used to track revenue and expenses to plan annual budgets and sales projections along with determining what areas of the business are over budget or under budget. Here s an example of a partial income statement which includes continuing and discontinu ed operations. For example a company may have acquired another business in the middle of a month and so only needs the financial results of the acquiree for the remaining days of the accounting period for consolidation purposes.

Take a look at the p l and then read a break down of it below. Normally we prepare an income statement for a single month or for a year. Compute gross profit total sales cost of goods sold step 2. Profit before income tax 300 000 income tax expense 25 75 000.

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 operating statement or statement of o. Income statement and related information free download as powerpoint presentation ppt pdf file pdf text file txt or view presentation slides online. Businesses selling physical goods can use the income statement to track changes in returns cost of goods or operating expenses as a percentage of sales to quickly fix issues in the business. Below is an example of amazon s consolidated statement of operations or income statement for the years ended december 31 2015 2017.

Partial income statement year ended december 31 xxxx continuing operations. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. However a partial income. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business.

A real example of an income statement. Learn to analyze an income statement in cfi s financial analysis fundamentals. Wiley chapter 4. Intermediate accounting 13th edition donald e.