How to make an income statement?

[denjoshep]

Hi everyone, I’m learning about financial statements and wanted some guidance — how do you make an income statement? What key sections or steps should I include to calculate revenue, expenses, and net income correctly?

 

[Rick_Grimes]

Here’s how I usually make one: list revenue first, then subtract cost of goods sold (COGS) to get gross profit. After that, subtract operating expenses (like rent, salaries, utilities) to get operating income, then subtract taxes and interest to get net income.

Basically: Revenue – COGS – Expenses = Net Income.

 

[Emly]

• List revenues – include all income sources.
• Subtract cost of goods sold (COGS) to find gross profit.
• Subtract operating expenses like rent, salaries, and utilities.
• Add or subtract other income/expenses (interest, taxes, etc.).
• The result is your net income (profit or loss) for the period.

 

[Emly]

List revenues, subtract expenses (like COGS and operating costs), and the result is your net income or loss for the period.

 

[Lucas]

To make an income statement, list all revenues at the top, then subtract the cost of goods sold to find gross profit. Next, deduct operating expenses and taxes to calculate the final net income for the period.

 

[Lucky]

To create an income statement, list all revenues earned during the period, subtract the cost of goods sold to calculate gross profit, and then subtract operating expenses. Include taxes, interest, and other costs to get net profit. The final result shows the business’s overall financial performance and profitability for that specific time frame.