A summary of the flow of transactions over the entire accounting period (between balance sheets).
 

Three years' worth of income-statement data are normally presented for comparisons and trend identification.

The data consists of the following types of items:

• Sales revenue
• Sales returns and allowances
• Other income
• Cost of goods sold
• Selling, general, and administrative expenses
• Depreciation and amortization expenses
• Interest expense
• Income taxes

*Gross profit = amount of sales dollars after cost of goods sold has been deducted.

Click here for a sample income statement.