What Does An Income Statement Look Like

An income statement is a financial statement that shows you how profitable your business was over a given reporting period.

What does an income statement look like. Also sometimes called a net income statement or a statement of earnings the income statement is one of the three most important financial statements in financial accounting. As you can see this example income statement is a single step statement because it only lists expenses in one main category. Total revenue total expenses and net income though this. What does an income statement look like.

While almost no two income statements look the same they all possess a common set of data. Cost of goods sold cogs 7 000 000. With all of this in mind an income statement for a company could look like this. 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.

Single step income statement. Here is an example of how to prepare an income statement from paul s adjusted trial balance in our earlier accounting cycle examples.