Partial Income Statement Formula

Disclose the results from discontinued operations on the income.

Partial income statement formula. A partial income statement is generally prepared by the company when there are certain or uncertain changes that affect the company s financial performance and is reported for only a part of the accounting period. 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. Finished goods inventory june 30 2013 cost of goods sold gross profit. Interest expense interest income and other non operational revenue sources are not considered in computing for operating income.

Normally we prepare an income statement for a single month or for a year. 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. A company s income statement summarizes the revenues expenses and profits for an accounting period. The multiple step profit and loss statement segregates the operating revenues and operating expenses from the nonoperating revenues nonoperating expenses gains and losses.

However a partial income. Partial income statement for manufacturing company. A discontinued operation is a separate major business division or geographical operation that the company has disposed of or is holding for sale. Compute gross profit total sales cost of goods sold step 2.

Sales discounts net sales cost of goods sold. A partial income statement reports information for only part of a normal accounting period this tends to be a special purpose document that is only used once. Compute income from operations gross profit operating expenses. Vertical analysis formula income statement income statement item total sales 100 vertical analysis formula balance sheet balance sheet item total assets liabilities 100 to increase the effectiveness of vertical analysis multiple year s statements or reports can be compared and comparative analysis of statements can be done.

Formula for operating income. There are three formulas to calculate income from. 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. Morrison pet supplies company partial income statement for the year ended june 30 2013 sales revenues.

Finished goods inventory july 1 2012 cost of goods manufactured cost of goods available for sale less.