489. Income Statement

Revenue and expenses over time

Simple:

Detailed:

Revenue:

• Product Sales
• Services Rendered

Expenses:

• Direct (increase in direct proportion to sales)

  • Cost of services
  • Cost of goods sold
  • Product sales - cost of goods/services = gross profit

• Indirect (overhead)

  • Fixed (no correlation to sales)

    • Rent
    • Salaries
    • Insurance
    • Admin
    • Legally
    • Accounting
    • Marketing
    • Depreciation
    • Amortization

  • Variable (loosely correlated)

    • Advertising
    • Commissions
    • Utilities