Income Statement

Discipline: Economics

Income Statement is a financial statement that is used to figure out a firm's net income (or net loss) by first stating the annual gross sales revenue, and then adding and deducting operational, financial, and other revenues, costs, and expenses that occurred in the same accounting year.

A Sample Income Statement is as follows:

Gross sales
Less: Sales returns and allowances
Less: Sales discounts
= Net sales
Less: Cost of sales
= Gross profit
Less: Operating expenses
= Income from other operations
Add: Other income
Less: Other expenses
= Income before taxes
Less: Income tax expense
= Net income

Also see: balance sheet, financial statement, statement of cash flows

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