Income Statement

Question 1

How do you find gross profit?

Answer 1

Add sales revenue, subtract cost of goods sold

Question 2

What comes after gross profit?

Answer 2

Operating Expenses

Question 3

What is in Operating Expenses?

Answer 3

Administrative expenses, selling expenses, restructuring costs, loss/gain from unusual or frequent events, loss from write-downs of inventory

Question 4

Operating Expenses total out to become what?

Answer 4

Operating Income

Question 5

What comes after Operating Expense?

Answer 5

Other Income (Expense)

Question 6

What is in Other Income (Expense)?

Answer 6

Interest Revenue, Interest Expense, gain/loss on sale of investments, income from continuing operations, discontinued operations, and extraordinary item

Question 7

What do you calculate income tax expense on?

Answer 7

Income from continuing operations before extraordinary item, income from loss/gain of discontinued operations, and extraordinary item

Question 8

What are the three calculating steps in EPS?

Answer 8

Calculate income from continuing operations before extraordinary item, discontinued operations, and extraorindary gain/loss