Income Statement Example Income statements can look different from one company to the next depending on a company’s streams of income and expenses and how they choose to categorize them.

The income statement shows a company's revenues and expenses by line item for the period. To illustrate the effect that an expense accrual has on an income statement, assume that the bookkeeper of ...

In this example, the year one gross profit is the difference between the $300,000 revenue and the total of the variable expenses — $99,000. This leaves $201,000 in gross profit.

Like any other expense, a company must account for its supply costs on the income statement. A basic multiple-step income statement is set up to separate operating and non-operating expenses.

As an example, in year one we'll divide the company's "Salaries" expense, $95,000 by its sales for that year, $400,000. That result, 24%, will appear on the vertical analysis table beside Salaries ...

There are various components in operating expenses, and each company has its own set of standards, but the line items below are what generally appears on the income statement.

Find a company's periodic interest rate by dividing interest expense by total debt and multiplying by 100. To annualize a quarterly rate, multiply the periodic interest rate by four. Use income ...