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.
Revenue or Net Sales
Money that the company receives through the sale of its products and services
Costs of Sales or Costs of Goods Sold
Costs that go into the production of the aforementioned goods and services.
This is the difference between the two concepts described above.
This includes the costs that the company incurs which do not include the cost of sales.
This includes the income from the normal operations after paying the operating expenses
This is the income earned not through the sale of its products and services but through their investments.
This is the income that the company sets aside to pay its taxes.
This is the difference between net income and the dividends on preferred stocks over the average shares outstanding.