Income Statement(损益表)

Income Statemen(损益表)

Income Statemen(损益表)

Income Statemen(损益表)

CONTENTS1.What Is an Income Statement?

2.What is Income Statement used for?

3.the components of income statement

4.summary

Income Statemen(损益表)

Income StatementAn income statement is a summary of the revenue and the expenses for a specific period of time, usually a month or a year. Reports : change in financial condition

Income Statemen(损益表)

Income Statement

Income statement

is designed to portray the operating results for a period of time.

You use income statement to track revenues and expenses so that you can determine the operating performance of your business over a period of time.Back

Income Statemen(损益表)

What is Income Statement used for?1.Reveal a company's profitability, determine the operating performance of your business over a period of time. 2.Find out what areas of their business are over budget or under budget. 3.Unexpected expenditures can be made clear. 4.Track dramatic increases in product returns or cost of goods sold as a percentage of sales. 5.Determine income tax liability. Back

Income Statemen(损益表)

Components of Income Statement

Single-step Form the components of income statementMultiple-step Form

Income Statemen(损益表)

Components of Income Statement

Single-step form(单步式利润表)

---It gathers all the revenue together , then deducts all the expenses from the revenue to get net income.

Income Statemen(损益表)

Single-step FormRevenue Net sales Interest income Investment revenue Total Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses

XYZ COMPANY Income Statement For The Year Ended December 31, 2008

$50,000 3,000 15,000 $68,000 $30,000 5,000 3,200

Interest expenseIncome taxes Total expenses Net Income

2003,000 $41,400 $26,600

Back

total revenues – total expenses = net income

Income Statemen(损益表)

Components of Income Statement

Multiple-step form(多步式利润表)---It presents gross profits, operating income(营业收入), operating income before taxes(税前收益), and net income(净收 入). In the Multiple-step Form, the content of Income Statement is divided into some items, which generating some interim(中间的) information and the net incomes can be computed through several steps.

Income Statemen(损益表)

= =

Net SalesCost of Goods Sold

Gross ProfitGeneral Operating Expenses

Income from operations

Income Statemen(损益表)

Income from operations

+

Other Income Extraordinary IncomeEarnings Before Interest and Tax (EBIT) (息税前利润)

+=

Income Statemen(损益表)

=

Earnings Before Interest and Tax (EBIT) Interest Expense Taxes Net Profit After Taxes (NPAT)(税后净利润)

=

Dividends(股利)

Retained Earnings(留存收益)

Income Statemen(损益表)

Components of Income Statement

multiple-step

XYZ COMPANY Income Statement For The Year Ended December 31, 2008$50,000

Net Sales (净销售额)

Cost of Goods Sold (销售货物的成本)Gross profit (毛利润)

30,000$20,000

Operating ExpensesSelling expenses:(销售费用 )

Wages and salaries

(工资、薪金)

$2,200500 1,000 $3,700 (continued)

Materials and supplies (材料和供给) Depreciation expenses (折旧费) Total selling e

xpenses

Income Statemen(损益表)

Components of Income Statement

)

Administrative expenses:(行政费用Wages and salaries Depreciation expenses Other administration expenses Total other administration expenses Total operating expenses Income from operations $2,800 600 500 $3,900 $7,600 $12,400

Other Revenues and Gains:(其他收入和收益) ) Rental revenue(租金收入 $200

Other Expenses and Losses:(其他费用和损失) Interest expense Income before income tax(税前收益) Income tax (所得税 Net income() 300 $12,300 4,920 $7,380

)

Income Statemen(损益表)

Brief Summary1.Income Statement is a summary of a company’ s profit or loss during any one given period of time . 2. The income statement traditionally has been prepared in either single-step form or multiple-step form.

3. Income statement is prepared according to the

amounts occurred on revenues and expenses ledger (accumulated amounts are included).

Income Statemen(损益表)