Income Statement Example Simple

All income statements have a heading that display s the company name title of the statement and the time period of the report.

Income statement example simple. However the simplest financial statement template of which you can find examples on this page and the most detailed simple profit loss statement template will have some key points in common. In reality companies often use more complicated multiple step income statements where key expenses are separated into categories. It adds up your total revenue then subtracts your total expenses to get your net income. As you can see there is no standard form for an income statement.

Would have the following heading. It is also referred to as the bottom line. The two examples provided in the template are meant mainly for small service oriented businesses or retail companies. Paul s guitar shop inc.

All expenses are totaled. For example a comparative income statement might include the months of january february and march with separate column headings and a full income statement prepared for each month. For example an annual income statement issued by paul s guitar shop inc. A real example of an income statement.

For year ended dec. At its most simple the calculation for an income statement is. 2 the multi step income statement example breaks out the gross profit and operating income as separate lines. Take a look at the p l and then read a break down of it below.

A major expense shown in our first income statement example above is tax. Tax or taxation is actually shown in a simplified way in that income statement as it is a single step income statement. Here s an example single step income statement we created for another hypothetical company dead simple coffee inc. 1 the simplified single step income statement groups all of the revenues and expenses except the income tax expense.

Dead simple coffee inc. For the year ended december 31 2015. Income revenue expenses what is an income statement used for. A complete income statement will have these elements.

A single step income statement is a little more straightforward. Below is an example of amazon s consolidated statement of operations or income statement for the years ended december 31 2015 2017. How to draft an income statement. All income and revenues are totaled.

The purpose of income statements. A comparative income statement compiles income statements for multiple periods into one document using separate columns for easy analysis. An income statement is just one of the many documents included in a financial statement which also includes other financial reports like the balance sheet and cash flow statement also called the profit and loss statement the income statement focuses on the revenue and losses of the company basically providing the company an overall view of their gains and.