Introduction to the Income Statement

[JediFight]

Great slow explanation. Thank you. Very nice to have information like this available.

[ebutuoy76]

Income Statement/Balance Sheet/Cash Flow Statement/G&A/SG&A/Cost of Goods Sold/Marketing/Sales/Gross Profit/Operating Profit/Enterprise Value/Return on Asset/ROA/Pre-tax Income/Net Income/Depreciation/Amortizati­on/Return on Equity/ROE/Variable Cost/Fixed Cost/Sales People/Auditor/plain vanilla/jumble up/nuance/detract/

[flany1960]

Thank you for this video and I wish you health and wellness, as well as you can get discounts for organic products International DXN number : 1420-31106 or join my group

[Ren1026cbcc]

Why is it that only the last $500,000 is taxed? Wouldn't the sales ($3,000,000) be taxed? Please let me know what I am missing.

[iNinjaNotes]

@Ren1026cbcc Sales are NOT taxed. Only pre tax income is taxed, which should be one of your last numbers on your income statement before calculating tax. All of those expenses like cost of goods sold, interest expense, marketing expenses reduces your taxable income. If you were to tax sales @ 30% it would be $900,000 of tax. This wouldn't make any sense right? Because the cost of all the goods you produced is $1,000,000.

Always make sure that the numbers make sense!

[Ren1026cbcc]

@iNinjaNotes Thanks for explaining. :)

[mehwhatupdok]

this has really helped my university exam for accoutning. have no fucking idea what a "widget" is ...but it helped! :D Thanks bud!

[keeperofthecheese]

the fucks a widget?

Other than that, top stuff.

[wag1blad]

nigger u gay

[mizzprinks]

I am a medical student and recently an MBA student to learn about finance. This is the first time I actually wanna learn finance after starting the course, because it was simply so boring to a medical student like me and made absolutely no sense. Now it does, THANKYOU! GOnna watch the rest of your economics videos::)

[submissivegirl12]

thank you sal!

[jfabproductions]

I want a wigit :(

[Geesjuh]

thankyou so much!!

[coebrown123]

Thanks for posting. You have a nice way of making this stuff come to life.

[zufrieden23]

the best!!!!!!!!!!!

[santabir]

why the fuck my lecture chintu cant explain like this,,,

[2525georgia]

Why can't my lecturer explain it like this!!!! Thanks, you're the best!

[TheSolidsnake2001]

Hi Sal, I think there is a mistake here in this video about the ROE & ROA defination. The ROE is 350K/5m = 7% and the ROA is 350K/10m = 3.5%

[freethoughtmusic]

Another great video. You have a wonderful ability to make things understandable Mr. Kahn. It is not dumbed-down to imbecility but neither is it incomprehensible in its' technical jargon. Thank you so very much for posting.

[kristymcglynn1]

Income statement is one of the 3 financial statement. It could be an annual statement, quarterly statments , or a 6 month statement. Revenue sales is the money they give you over a period of time. the income statement has the revenue, gross profit with operating profit, equaling net income. Kristy McGlynn 

[gilpuy]

yesss...very outstanding explanation...helping to understand all of those subject that makes me suck,but now i start to like it...you are amazing mr khan, i hope my real lecturer in campus is you sir...salute from indonesia

[gilpuy]

yesss...very outstanding explanation...helping to understand all of those subject that makes me suck,but now i start to like it...you are amazing mr khan, i hope my real lecturer in campusis you sir...salute from indonesia

[anzwertree]

Dude, you rock

[meanmanturbo]

Maybe a little to much detail, or maybe it is just a difference between US and Sweden (since we have all these nice taxes here...), but when I did this at university you would always try to max out write downs on assets to minimize pre tax income to minimize the taxes you pay. Of course, this is bad for share holders, since it would make the company look worse of then it really is.

[maddder]

the only bit i did'nt get was the 500.000 interest payment, what about then actual 5 million installment?

[delinquent2002]

You are really helping me to understand the things i did not understand befor...lol. I have a question and maybe you can help me with this.. I buy Merch.. from a wholesaler out of California. When I recieve my merch... and the invoice from the wholesaler there is a Freight charge. When i do my Quarterly Taxes, do i include the freight charges? Or is it a deduction?

[MichaelisOnYourtube]

I know you probably don't have much time for requests, but is there any way you could make a video to explain the cash flow statement and how it relates to the two other financial statements? I've been looking around online but I can't seem to understand it clearly. If you could do this i would greatly appreciate it. Anyways, thanks for your time and videos, I've learned ALOT!

[yazafara]

thanks so much==i actually feel i can try and understand an Income statement if i run into it--thanks so much for the upload

[jcdlrv]

hi, i want to know what is the next video i would see after price and market capitalization.

[gothicking999]

Excellent, just one question though, whats a widgit?

[maxamed1986]

Excellent best of the best vedeo

[wazirahmadzai]

wonderful !!! absolute excellent!

[80amnesia]

This guy is amazing, he totally know lot's of topics all related to maths ******

[ohmitchiebabe]

:) Easy to understand video

[millerdg1]

You saved my ass, thank you!

[blueskies66]

Aren't all corporate taxes built into the sales pricing of the products or items so even though they are accounted for they aren't actually out of pocket costs? Just wondering out loud. Ü

[afendiamir]

omg you're video's are soo informative. i just subscribed. you are awesome.

[alfiedj]

Yea, thx man, helpful stuff!

[IwasBorn2Win]

Thank You very much for this video. I am new to the accounting field of study, and I was so frustrated in learning the "accounting language , its  terms and its meanings......

You are really helping me understand this "stuff"...........lol

I think you are helping me understand investing terms or accounting terms better than my instructor......

Again thanks a million

[iambond123]

HI Sal Your videos are really Usefull.

Thanks Indeed

Chirag Ali

[carlbostic]

Thanks Sal. You did a much better job at helping me build a foundation than my instructor.

[Vitsv1]

perfect videos !

[seanyb12345]

sal you rock!

[touristinexile]

Why are you making this so complicated. Why don't you use proper accounting terminology. Assets Liabilitys Income Expences and Capital these are basic terms. You have to understand how these things relate to one another before you refer to them by esoteric names. They have to understand the concept of double entry bookeeping. Debits and Credits are hard enough consepts to grasp withou using advanced investing terms

[namski2410]

sure we did not watch the same video. pls could u put up ur own vidoe with all ur accounting terms defined the proper way and as basic as you refer. Old scholl!!

[poshstars]

you r right .

[cool70200]

Thanks for the video.

[khanacademy]

That is one of the definitions. The standard formula takes out the effect of interest and tax savings from interest and is (net income + interest - tax savings from interest)/Assets which is essentially saying how much earnings would I have if I weren't paying debt. If you wanted a pre-tax ROA than you could just add back interest and taxes and divide by Assets (or EBIT/Assets which is, for the purposes of this examples, the same as Op profit/Assets

[snowbored84]

ROA is generally calculated as net income/total assets because the cost of capital and taxes need to be factored in.

[megaelliott]

Thanks Sal for these videos.