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Income Statement - Coggle Diagram
Income Statement
Multi-step Income Statement
Revenue - COS = Gross Income
GP = Revenue - COS
GM = (GP / Revenue) X100
Gross Income - Operating Expense = Operating Income
Operating Income - Interest Expenses = Profit Before Tax
Operating Margin (EBIT Margin)= (Operating Profit / Revenue) X 100
Profit Before Tax - Tax Paid = Net Income (Profit After Tax)
Operating Section
Non-operating Section
ROA - Return on Assets
Revenue / Assets
ROE - Return on Equity
Revenue / Equity
Accounts Receivable - Revenue earned but cash not received
Time to collect = 365 / (Tot Net Sales / Acc Receivable)
Expenses
Cost of Sales
Direct Calualtion
Calculating after accounting period
Opening Inventory + Units Purchased - Units Sold = Closing Inventory
Operating Expenses
Selling Expenses
Admin Expenses
Includes Depreciation
Interest Expenses
Single Step Income Statement
Does not report on Gross Profit
(Revenues + Gains) - (Expenses + Losses) = Net Income
Used mostly by smaller companies
Revenue
Income or any form of cash inflow
Shows profitability of company
Can show finance providers if company can honour debt.
Allows for comparisons with other companies