Understanding Financial Statements

An income statement shows the profitability of a company within a given period, revealing the company’s company’s revenues, costs, expenses, and losses, all in a logical manner.


The standard components of an income statement are all listed below:
Revenue or Net Sales
Cost of Sales or Cost of Goods Sold
Gross Margin
Operating Expenses
Operating Income
Other Income and Expenses
Provision for Income Taxes
Earnings per Share

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