Income Statement Example Philippines

Learn to analyze an income statement in cfi s financial analysis fundamentals.

Income statement example philippines. The document calculates net income of a business entity or company by subtracting total expenditures made in the whole year from total income generated by all resources. Paul s guitar shop inc. It is also known as profit and loss statement statement of profit or loss revenue statement statement of financial performance and earnings statement etc. Below is an example of amazon s consolidated statement of operations or income statement for the years ended december 31 2015 2017.

For the year ended december 31 2015. By examining a sample balance sheet and income statement small businesses can better understand the relationship between the two reports. Example 2 multi step income statement. Barring any movements in the other balance sheet accounts this amount will then be added to the cash account under assets and to the owner s equity account under liabilities and owner s equity.

20x1 and the related statements of income and retained earnings and cash flows for the year then ended in accordance with statements on standards for accounting and review services issued by the american institute of certified public accountants. This statement is a condensed version of the more detailed income statement presented in illustration 4 2. Would have the following heading. A real example of an income statement.

All income statements have a heading that display s the company name title of the statement and the time period of the report. Therefore after one month of operation your store earned you php57 000 in pre tax income. Illustration 4 2 income statement. As compared to a single step income statement a multi step income statement examples are more complex.

For example an annual income statement issued by paul s guitar shop inc. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. The income statement would then be as follows. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc.

The balance sheet and the income statement are two of the three major financial statements that. It is more rep resentative of the type found in practice. Every time a company records a sale or an expense for bookkeeping purposes both the balance sheet and the income statement are affected by the transaction. All information included in these financial statements is the.

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