This is a good indicator of the margin of our products or services.
This is the amount left over from sales after removing the cost of Sales. Also called as Cost of Goods Sold or COGS. In this case, Microsoft spent $4277 M for Product and $8768 M for Service and Other. This will typically include raw materials, labor, shipping costs and other costs which were needed to build the inventory and deliver the products and services which generated the sales in the previous section. This is the direct cost of producing the goods. When the cash actually flows into Microsoft will be reflected in a different financial statement (Cash Flow Statement). Whether the customers have made the payments to Microsoft is immaterial when it comes to the Income statement. This typically represents the sales amount of products and services shipped out to customers during the period. Total Revenue was $41,706 M in 3 months ending March 31, 2021. In this case, Microsoft recorded $16,873 M of Product revenue and $24,833 M of Service and other revenue. This is the total sales recorded by the company during the period. I will use Microsoft’s income statement for this illustration. We will talk about some differences later, but let’s focus on similarities between the statements.īroadly speaking there are 7 key sections that I could see. Microsoft Income Statement (ending March 2021) Apple Income Statement (ending June 2021) Tesla Income Statement (ending June 2021) Free income statement template for mac download#
These are available to download from the companies’ websites. In order to understand the structure and parts of an income statement, let us take a look at some example income statements from three well-known companies, Microsoft, Apple and Tesla. Income statement is also called using the following names: Balance Sheet and Cash Flow Statement are the other two. It is one of the three financial statements of a business or a company. It is a representation of the ‘profitability’ of a company. Let’s start with income statement definition.Īn income statement is a financial statement of a company that shows the company’s revenues and expenses during a specific period. Creating income statement in 4 simple steps.
Creating Income Statement for your Business.Components or parts of an Income Statement.
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