Other Operating Income In Income Statement

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.

Other operating income in income statement. Operating income refers to any financial activity resulting from a company s core business as well as other activities that are a logical extension of the core business. Also nonrecurring items such as cash paid for a lawsuit settlement are not. In income statement other income is presented after the other gross profit. Income from the adjustment and release of provisions recognized in other operating expenses.

Indeed retailers tend to generate other operating income in excess of 14 of total operating income as shown in figure 69. Image by sabrina jiang. Other income is income derived from activities unrelated to the main focus of a business. Similarly non operating profit or gain and loss like fair value gain loss on held for trading investments and.

Other operating income million 2018. For example a manufacturer of washing machines earns rental income from sub leasing unused office space to a third party. Formula for operating income. Revenue from miscellaneous activities.

Income from foreign currency and hedging transactions as well as from the measurement of lti options. Only 22 of the 16 000 companies in our bloomberg sample reported other operating income. This would include things such as revenue from sales costs of goods needed to produce products for sale and items that are a regular part of the business and usually have. This rental income would be classified as other income on the company s income statement other types of income that are commonly classified as other income are interest income.

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. There are three formulas to calculate income from. Operating income excludes items such as investments in other firms non operating income taxes and interest expenses. The entire disclosure for other income or other expense items both operating and nonoperating.

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. Cogd 300 000 gross profit 200 000. 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. Interest expense interest income and other non operational revenue sources are not considered in computing for operating income.