1. How To Read an Income Statement By Omar Azami

2. What is an Income Statement? An Income statement is statement of revenue minus expenses to arrive at a net income. However all revenues and expenses are not the same as we will discuss shortly, along with the various sections of the income statement.

5. Operating Section A report of the revenues and expenses of the company’s principal operations Sales or Revenue Section- a subsection presenting sales, discounts, allowances, returns, and other related information Cost of Goods Sold – A subsection that shows the cost of goods that were sold to produce the sales

6. Operating Section Continued c. Selling Expenses – A subsection that lists expenses resulting from the company’s efforts to make sales d. Administrative or General Expenses – A subsection listing expenses of general administration.

7. Non-operating Section A report of revenues/gains and expenses/losses incurred from non-operating activities, such as investments. Other Revenues and Gains. Other Expenses and losses.

8. Income Tax Section A section deducting the federal and levied sales tax

9. Discontinued Operations Loses or gains associated with the disposition of certain segments of a company.

10. Extraordinary Items Unusual and infrequent material gains or loses. Often associated with destruction from natural disasters.