10. The Income Statement

There are 3 main account statements for companies - the income statement, the balance sheet and the cash flow statement. This video in on the first of these - the income statement.

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• Michael
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[duardie2]

how do you present income statement on manufacturing company?

[savingandinvesting]

Largely no different than others in terms of fomat. Generically:

Revenues

COGS

Gross Profit

Operating Expenses

Operating Profit etc.

The COGS would probably be larger given the cost of materials. I would look at a few samples via Google to get a feel.

[lysenkiy]

A really simple as well as good explanation of financial statements. However, I'd like to add that there is the forth financial statement -- Retained Earnings Statement. Would you talk about it in your next videos if any? Thanks

[savingandinvesting]

Thanks lyslenky, the retained earnings statement is often included as part of income statment (esp. when not many share classes) and shows the change in retained earnings based on that period's income, less the dividends paid out. Many textbooks do not refer to, and often not used in analysis, and theoretically of value only in more complex companies. Will def. note for website as it develops, and definitely more videos to come. Thank You for support and comment!

[jodiboi]

I like your simple explanation of what an Income statement is...Thank you for taking the complexity out of it and making it where the layman can understand it. Once again thank you and 'God' bless you.

'Daniel H.

[savingandinvesting]

Thank you very much for the comment!

[riverlioness]

Periodicity of income assumption---Periodicity is the idea that economic activities of a company can be divided logically and identified with time periods such as monthly, quarterly, and annually.

Good video.

[moncik1]

Need to prepare all financial statements (corporation) for my project that is coming next week. Im in big trouble. Hopefully this will help.

[worldlegend1]

i ask u to send me all of ur videos please

[fredricthong]

haha u speak way better than my lecturer^^

[incomegurus]

As a successful business owner with several streams of income, I can appreciate your insight and expertise. Very valuable. Thank you for creating this video.

Iva

[777jboss777]

well,,you can use ur accounting knowledge to finance ur tuition to university..:)good luck 4 the future man