2.4 Financial Reporting - The Income Statement

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2.4 Financial Reporting - The Income Statement

University of Texas at Austin
Fin 320f - Foundations of Finance
Foundations of Finance Documents

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My problem lies in reconciling my gross habits with my net income Errol Flynn Australian-American movie actor (1909 – 1959) Foundations of Finance 2.4 Financial Reporting The Income Statement and friends 2011 - 2023© H Toprac 3 Income Statement example Sales $1,000,000 Less: COGS 600,000 Gross Profit $400,000 Less: OpEx 250,000 Operating Income $150,000 Less: Interest Expense 50,000 Earnings B4 Taxes $100,000 Less: Tax Expense 40,000 Net Income $60,000  Sales (aka Revenue): the amount earned from selling goods & services  Costs of Goods Sold (aka COGS or COS): the cost of acquiring the inventory which was subsequently sold  Operating Expenses (aka Opex): All day- to-day costs of running the firm, including depreciation and SG&A 2011 - 2023© H Toprac 4 Income Statement details

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