What Is an Income Statement?
The income statement is the film of a whole period; the balance sheet is the photo of one day.
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1.What does an income statement cover?
The income statement is the film of a whole period; the balance sheet is the photo of one day.
2.In the worked example, what are net sales?
Sales of 120,000 minus 2,000 of returns and discounts give net sales of 118,000.
3.What is the gross profit in the example?
Net sales of 118,000 minus the 70,000 cost of goods leave a gross profit of 48,000.
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Sources (2)
- U.S. Securities and Exchange Commission: Beginners' Guide to Financial Statements
- Eigene Berechnung (synthetisches Rechenbeispiel
Education only. Not financial advice.