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The Income Statement
What is an Income Statement?
- Financial statement that shows revenues, expenses and profit for a given period.
- In managerial accounting, the income statement typically shows a breakdown of how COGS is calculated.
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Example: Income Statement
Prepare the income statement using the following information, the company's tax rate is 30%
- Sales: $500,000
- Cost of goods manufactured: $250,000
- Finished goods, January 1: $90,000
- Finished goods, January 31: $50,000
- Head office equipment depreciation: $12,000
- Utilities expense for head office: $4,000
- Sales commissions: $50,000
Mark Yourself Question
- Grab a piece of paper and try this problem yourself.
- When you're done, check the "I have answered this question" box below.
- View the solution and report whether you got it right or wrong.
Practice: Income Statement
Prepare the income statement for ABC Inc. for the month of March 2022 using the following information:
