Income Statement Homework Help

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What is income statement?

 

A report made at the end of any financial period to show the improvements in terms of business and earned profits is called as income statement. These are found by the amount of revenue generated and expenses incurred. Along with balance sheets and statement of cash, income statements are helpful to determine the company’s financial position in market. In this article for Income statement homework help we define the uses long with various items listed on an income statement.
 

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Contents of income statement

 

The following listed things compiled by our Income statement homework help writers signify the various pillars of an income statement.
 

1. Sales: in a particular accounting period, the amount of goods sold or services occupied are termed from sales.
2. Net sales: net sales are the remainder when the sales returns and allowances are deducted from the gross sale done in an accounting period.
3. Cost of goods sold: the summation of all costs by selling goods in an accounting period is called as cost of goods sold. As our Income statement homework help experts suggest, the unsold goods are added at the beginning of the inventory with the purchases made during the year and later on they are deducted with the value of unsold goods.
4. Gross profit: net sales – cost of goods sold.
 

Uses of income statements homework help

 

a. Financial ratios can be calculated
b. Return on equity, return on ratio, operating profit etc. can be generated
c. A two or three year historical data can also be prepared by the help of income statements.
 

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