Income statement
A financial statement reporting revenue, expenses and profit or loss over a specified period. Under accrual accounting these are not simply cash receipts and cash payments; the statement is also called the profit and loss statement.
Income statement in round numbers
Hypothetical annual amounts in US$ millions: revenue of 100.00 less cost of goods sold (COGS) of 69.50 gives gross profit of 30.50; less selling, general and administrative expense (SG&A) of 24.69 gives operating income of 5.81. Assume combined interest and income-tax expense of 2.96 and no other items, leaving net income of 2.85, approximately 2.9. This simplified presentation is not a complete universal statement format.
Scroll horizontally to read all columns.
| Measure | Amount |
|---|---|
| Revenue | 100.00 |
| COGS | 69.50 |
| Gross profit | 30.50 |
| SG&A | 24.69 |
| Operating income | 5.81 |
| Assumed combined interest and income-tax expense | 2.96 |
| Net income; no other items assumed | 5.81 − 2.96 = 2.85 ≈ 2.9 |
Terms Related to Income statement
Balance sheet · Cash flow statement · Net income (bottom line) · Revenue (top line) · All of the glossary