Explain The Following Parts Of An Income Statement
Complete the following: • In a document totaling a minimum of one page, explain the following parts of an income statement: o Gross profits – is defined as a company’s total revenue minus the cost of goods sold. This is the profit that a company makes after they deduct their costs that are associated with making the products. This also includes selling the product and anything associated with providing it. This is located on your company’s income statement. The formula used to calculate this is as follows: gross profit == revenue – cost of goods sold. http://www.investopedia.com/terms/g/grossprofit.asp o Operating expenses – is an expense that a business has through its normal business operations. This includes rent, inventory, equipment,
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