An income statement is part of the financial statement that shows the company’s financial performance over a specific accounting period. The income statement assesses the financial performance by providing a summary of the revenues and expenses of the company through both operating and non-operational activities.
The income statements have three main components.
The income statement is broken down into two parts: operating and non-operating.
The operating section of the statement example in pdf income reports the revenues from production minus the operating expenses. The expenses that can be shown in the operating section are cost of goods sold, research and development costs and SG&A costs.
The non-operating section of the income statement includes any related to the nonoperating areas of the business analysis. It shows the revenues and expenditures of the company from the intangible property of the business might own or the sale of the old business operation.
If you are uncertain on reading the income statement of your company, here are the few things to do.