Basic Financial Statements
Self-Paced Overview
The Income Statement
The Income StatementIncome Statement:A statement showing a firms revenues, and costs and taxes associated with those revenues for some financial period. shows a firm's revenues and expenses, and taxes associated with those expenses for some financial period. Where the balance sheet may be thought of in terms of the "left–right" orientation previously discussed, the income statement would be thought of in "top–down" terms.
Income Statement
Products, Inc.
January 1, 2012
| Sales | $540,000.00 |
| − Cost of Goods Sold | − $319,680.00 |
| Gross Profit | $220,320.00 |
| − Selling & Administrative Expenses | − $132,300.00 |
| Earnings Before Interest & Taxes | $88,020.00 |
| − Interest | − $10,356.00 |
| Taxable Income | $77,664.00 |
| − Taxes | − $35,726.00 |
| Net Income | $41,938.00 |
| − Dividends | − $33,108.00 |
| Transfer to Retained Earnings | $8,830.00 |