income statement Flashcards
1
Q
net sales in first step
A
sales - total of sales returns & allowances and sales discounts.
2
Q
gross profit=
A
net sales-COGS
3
Q
operating expense =
A
gross profit- expense total
4
Q
others include
A
interest exp, income tax
add total of both
5
Q
in the end net earnings =
A
operating total- total of interest exp and income tax
