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The multi step income statement format comprises a gross profit section where the cost of sales is deducted from sales followed by income and expenses to reach an income before tax.
Revenue on income statement example. For example consider the income statement shown in illustration 4 3 for boc hong company. Below is an example of amazon s consolidated statement of operations or income statement for the years ended december 31 2015 2017. Other income and expense dividend revenue 98 500 rental revenue 42 910 gain on sale of plant assets 30 000 171 410 income from operations 357 483 interest on bonds and notes 126 060. The exact wording may vary but you can look for terms like gross revenue gross sales or total sales this figure is the amount of money a business brought in during the time period covered by the income statement.
Example 2 multi step income statement. So for example in case of a manufacturer of electronic appliances revenue will comprise of the sales from electronic appliance business. Learn to analyze an income statement in cfi s financial analysis fundamentals. As compared to a single step income statement a multi step income statement examples are more complex.
Income statements can be structured as single step income statements in which there is one category for income and one category for expenses or they can be structured as multistep income statements in which incomes and expenses are organized by expense account. Sales revenue should be listed on every income statement along with other important financial figures. This statement is a condensed. The first line on any income statement or profit and loss statement deals with revenue.
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