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Income Statement
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Income statement presents the cumulative revenues, operating profits (EBIT), expenses and pre and after tax earnings for a period.
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Income Statement
The income statement is a summary of the trading records of a business during a defined time period.
The income statement provides total balances for the following:
Sales revenues
Less: Cost of sales
Less: Bad debts & returns
= Gross profit
Less: Business expenses + depreciation
= Operating profit (EBIT)
Less: Taxes
Less: Non recurring expenses
= After tax income
Less: Dividends
= Increase/Decrease to Reserves.
Revenues should account for income relating to the period. Revenues are conditional (for example if the customer has the option to cancel the order at some time in the future) the revenues in question should be credited to the period in which the revenue becomes assured.
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Software Links
Income Forecasting Excel
Reference Pages
Balance Sheet
Cash Flows
Earnings per share
Gross Profit
Operating Income Ratio
Operating Profit
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