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Basic income statement

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If you’re in business, you MUST understand the 3 Financial Statements. Here’s a quick overview: 📄 INCOME STATEMENT Main sections: 💰 REVENUE: Total Sales ➖ COST OF GOODS SOLD: The cost to deliver the product or service 💰 GROSS PROFIT: Revenue - Cost of Goods Sold ➖ OPERATING EXPENSES: All Overhead Costs 💰 OPERATING INCOME: Gross Profit - Operating Expenses ➖ OTHER INCOME: Money earned that is not core to the business 💰 PRE-TAX INCOME: Operating Income - Other Income ➖ INCOME TAX: Ta...

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Not all "profit" is created equally.... Here are 11 different ways to measure how much profit a company is generating: 1: Gross Profit: Explanation: Profit after subtracting the cost to produce the product / service Financial Statement: Income Statement Formula: Revenue - COGS 2: Operating Profit: Explanation: Profits generated from running the business Financial Statement: Income Statement Formula: Gross Profit - Operating Expenses 3: Pre-Tax Profit: Explanation: Total profits before tax...

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Income Statements don't have a universal look or layout.

That's because management teams have full control over the terms & layout of their financial statements.

Here are the other words that management teams can use when creating their Income Statement:

INCOME STATEMENT SYNONYMS:
→Revenue Statement
→Earnings Statement
→Operating Statement
→Statement of Earn...

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Here are the 3 types of income explained simply - earned income, passive income and portfolio income. To diversify your streams of income, you should have more than one stream of income. For more finance tips check out my blog!

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