The income statement is a financial accounting report that demonstrates how net income, or profit, is derived from revenues. The main categories appearing on an income statement include revenues, cost of goods sold, operating expenses, non-recurring items and net income.
The income statement is one of the three key financial statements issued by a company; the others being the balance sheet and the statement of cash flows. The income statement is arguably the single most important of these statements, since it provides investors, analysts, and creditors with a measure of the company's profitability.
Alternative titles for the income statement include:
The categories of information appearing on the income statement include:
The table below provides a high level summary of the components of the income statement (continuing operations).
|Cost of Goods Sold||(15,693,000)|
|Selling General and Administrative||(7,740,000)|
|Operating Income or Loss||6,178,000|
|Income from Continuing Operations|
|Income Tax Expense||(1,674,000)|
|Net Income from Continuing Operations||4,283,000|