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Sample Income Statement
Income statement is a financial statement which is developed by each company for the evaluation of its liabilities, assets, revenues and income. In this statement, total sale is calculated. This section is called revenue. Now the cost of production of all the sold products is calculated and then deducted from the sold products' sale rates. The result would be called gross profit. Now the administrative costs, operating expenses, sales and marketing expenses, research and development expenses and other operating expenses would be calculated and then deducted from the gross profit. The end result will be operating income. Now the operating margins and paid interest would be deducted. The end result would be income before taxes. Now profit margins and non-recurring events expenses would be deducted. The end result would be net income. Finally, dividends paid to stockholders would be deducted. The final result would be the income of a company. This is the reason that this statement is called an income statement.
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