Income Statements

1. Income Statements Entrepreneurship

3. Income Statement • A summary of a company’s profit/loss over a specific time period. • It shows the income earned and expenses paid for a business in the period being recorded.

4. Income Statement • Overall, it shows how well the business is doing by showing: • Sales made • Returns • Costs • Unexpected expenses

5. Key Terms • Revenue • The amount of money that is brought into a company by its business activities. • Example: money paid by customers • Expenses • The outflow of money. It is the costs that a business incurs through its operations to earn revenue. • Example: Employee wages, electricity, etc. Total Revenue – Total Expenses = Net Income

6. Key Terms • Cost of Goods Sold • The direct costs attributed to the production of the goods sold by a company. Revenue - Costs = Gross Income

7. Key Terms • Net Income • A company’s total earnings. • Net Loss • When expenses are greater then revenue • Net Income Video

8. Income Statement Formula Revenue • Cost of goods sold =Gross Income • Expenses =Net Income or Net Loss

10. Excel Basics • Columns – Vertical (Hint: Colosseum) • Rows – Horizontal (Hint: Road) • Cell - The intersection of a column and row