Income Statement Example Of Revenue

For example consider the income statement shown in illustration 4 3 for boc hong company.

Income statement example of revenue. Income statements show how much profit a business generated during a specific reporting period and the amount of expenses incurred while earning revenue. Businesses selling physical goods can use the income statement to track changes in returns cost of goods or operating expenses as a percentage of sales to quickly fix issues in the business. Conversely if the same manufacturer earns interest on its bank account it shall not be classified as revenue but as other income. This financial statement can also be used to track revenue and expenses to plan annual budgets and sales projections along with determining what areas of the business are over budget or under budget.

A real example of an income statement. Income statements can be structured as single step income statements in which there is one category for income and one category for expenses or they can be structured as multistep income statements in which incomes and expenses are organized by expense account. As you can see this example income statement is a single step statement because it only lists expenses in one main category. The income statement also called a profit and loss statement is one of the major financial statements issued by businesses along with the balance sheet and cash flow statement.

Other income and expense dividend revenue 98 500 rental revenue 42 910 gain on sale of plant assets 30 000 171 410 income from operations 357 483 interest on bonds and notes 126 060. Revenue includes income earned from the principal activities of an entity. The most common income statement items include. So for example in case of a manufacturer of electronic appliances revenue will comprise of the sales from electronic appliance business.

Here is an example of how to prepare an income statement from paul s adjusted trial balance in our earlier accounting cycle examples. This statement is a condensed. Below is an example of amazon s consolidated statement of operations or income statement for the years ended december 31 2015 2017. The multi step income statement format comprises a gross profit section where the cost of sales is deducted from sales followed by income and expenses to reach an income before tax.

Example 2 multi step income statement. Single step income statement.