Скачать или смотреть Income Statement | Format

Welcome to our channel! In this video, we’ll break down the Income Statement Format and explain the key formulas used in financial accounting to calculate profitability. Whether you're a student, an aspiring accountant, or a business owner, this step-by-step guide will help you understand how to prepare and analyze an income statement.

Topics Covered:
1️⃣ Net Sales:
Formula:
Net Sales = Gross Sales - Sales Discount - Sales Return and Allowance

2️⃣ Net Purchases:
Formula:
Net Purchases = Gross Purchases + Transportation In - Purchase Discount - Purchase Return and Allowance

3️⃣ Cost of Goods Sold (COGS):
Formula:
COGS = Opening Inventory + Net Purchases - Closing Inventory

4️⃣ Gross Profit:
Formula:
Gross Profit = Net Sales - COGS

5️⃣ Operating Profit:
Formula:
Operating Profit = Gross Profit - Operating Expenses

6️⃣ Net Profit:
Formula:
Net Profit = Operating Profit + Other Income

Key Highlights:
✅ Simplified explanation of the Income Statement structure.
✅ Practical examples to apply each formula.
✅ Learn how these calculations provide insights into a company’s financial performance.

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