Income Statement

Income Statement is a financial report that summarizes a company’s Revenue, expenses, and profit for a specific accounting period. It shows how much income the company generated from its primary operations, the costs associated with those operations, and the final Net Income after all expenses.

The Income Statement lists items in a structured order:

1. Revenue

   The total amount of income generated by the sale of goods and services related to primary operations.

2. Cost of Goods Sold

   The direct cost of producing or acquiring the goods sold during the period.

3. Gross Profit

   Revenue minus Cost of Goods Sold.

4. Operating Expenses

   The costs required to run day to day operations that are not part of production.

5. Operating Income

   Gross Profit minus Operating Expenses.

6. Non Operating Income and Expenses

   Items that arise from activities not related to primary operations.

7. Income Before Tax

   Operating Income adjusted for all Non Operating Income and Expenses.

8. Income Tax Expense

   The amount of taxes owed on the company’s taxable income for the period.

9. Net Income

   The final profit or loss after subtracting all expenses, including taxes.