form showing the elements used in arriving at a company's net income for the accounting period; also called profit and loss statement. It must be included in the annual report. An illustrative condensed income statement follows:
Sales
Less: Cost of sales
Gross Margin
Less: Operating expenses (including selling expenses and general & administrative expenses)
Income from operations
Add or Less: Other income and expenses
Income before tax
Less: Provision for income taxes
Income from continuing operations
Add or Less: Income from discontinued operations (net of tax)
Income before extraordinary items and cumulative effect
Add or Less: Extraordinary items (net of tax)
Add or Less: Cumulative effect of a change in accounting principle (net of tax)
Net income
profit and loss statement detailing a firm's financial operations for a specific period, including net profit or loss for the period in question. It usually is accompanied by a balance sheet for the end of that period. Income statements are included in quarterly 10Q reports and annual 10K reports filed with the Securities and Exchange Commission.
financial statement that gives operating results, such as net income and loss and depreciation, for a specific period; also referred to as earnings report, operating statement, and profit-and-loss statement.
a historical financial report that indicates sources and amounts of revenues, amounts of expense accounts, and profit or loss. Generally prepared on either an accrual or a cash basis. Contrast pro-forma statement.
Example: Table 27.
| TABLE 27 | ||
| YEAR 2000 P&L | ||
| Rental income actually collected | $96,000 | |
| Concession income | 5,000 | |
| Late fees | 1,000 | |
| Total revenues | $102,000 | |
| Interest expense | 42,000 | |
| Repairs and maintenance | 12,000 | |
| Depreciation expense | 7,000 | |
| Total expenses | 61,000 | |
| Profit (loss) | $41,000 |
