when comes to looking at income statements example incomes statement is called; the statement of the public company. which is released in every year; and it helps a lot of investors, and business person, to understand the industry: how the particular organization; is running on profit (or) not.
so let’s take a deep, two examples. how you can analysis, and determine the income statement.
apple income statement example
if you download, any of the income statements. then, you can able to see the revenue; is the first line of the income statement. most of them believe, that revenue and income are same. but it doesn’t. so before, we understand the total income statement example. let’s take the difference; in revenue and income.
revenue.
revenue is the cost of total sales, but the income; is the profit of operation. let’s the apple industry, made the sales of apple phones, tablet, laptops computers, etc.. these are the sales of the company, but not a profit of the apple company.
the end profit; is called net income— in the income statement. revenue; never subtract any cost of goods expense, depreciation, amortization, interest expense, income tax, etc…. but net income, always subtract these all the things
cost of goods
let’s say the apple industry has a revenue; of 250 billion dollars. and they have a cost of goods is; 100 billion dollars. some people, suddenly ask what is the cost of goods? the expense for manufacturing; the service (or) product, then it is called as cost pf goods .when you want to know, the clearly. about the income statement. you must want to know everything. that, are mentioned; on the income statement of the company.
depreciation.
if some of the industry; has assets. then, the asset needs maintenance and repair. for every certain time. which is maintenance, by all the public industry.it is called depreciation.
Amortization.
most of the people; misunderstood this. when comes to talking about depreciation. it is all about, tangible asset. amortization, are intangible asset. which means you cannot touch the asset. such as copy rights, trade mark, patent agreement,s etc…
let’s say if you sell any of the products like books. for every copyrights you earn money. and for every copy your customer pays the money.
interest expense
many of the people, are confused about the interest expense. interest expenses are; not like your normal spending. however, interest expenses are; when you have any type of loan. then, you’ll pay interest on it. the same thing; applies to big types of industry.
let’s the apple industry, have any big debt. then, they will pay the interest for; their loan. moreover, these interest payments are; called the interest expense.
income tax.
when comes to income tax. it is very important for all-profit organizations. who earn the profit more- than, their expense. they must want to pay the income tax on it. but, income tax doesn’t calculate; on revenue for the company.
it is calculated on the final net income; to pay the government. so your income; comes in different brackets. and various rates. so when you the high; high-level organization. then, you must want to know about; your income tax. however, to identify that. just check your own country’s Internal revenue service website.
net income.
furthermore, net income is the final amount. which is the shareholder amount. share this amount as a profit. now let’s say depreciation is 500 million dollars. then amortization is 250 million dollars.
interest expense of 10 million and income tax should be; let’s say 1.5 billion dollars.
finally if want to find the net income. then, just subtract all of them from revenue. if you have any more doubts about the income statement example. then, don’t hesitate, feel free to contact us.