Ch. 2-Understanding financial Statements. Taxes and cash flows ◎2002, Prentice Hall. Inc
Ch. 2 - Understanding Financial Statements, Taxes, and Cash Flows © 2002, Prentice Hall, Inc
Income statement SALES EXPENSES PROFIT
SALES - EXPENSES = PROFIT Income Statement
Income statement Revenue SALES EXPENSES PROFIT
SALES - EXPENSES = PROFIT Income Statement Revenue
Income statement SALES EXPENSES PROFIT
Income Statement SALES - EXPENSES = PROFIT
Income statement SALES Cost of goods sold EXPENSES PROFIT
Income Statement SALES - EXPENSES = PROFIT •Cost of Goods Sold
Income statement SALES Cost of goods sold Operating Expenses EXPENSES PROFIT
Income Statement SALES - EXPENSES = PROFIT •Cost of Goods Sold •Operating Expenses
Income statement SALES Cost of goods sold OPerating Expenses EXPENSES (marketing, administrative) PROFIT
Income Statement SALES - EXPENSES = PROFIT •Cost of Goods Sold •Operating Expenses (marketing, administrative)
Income statement SALES Cost of goods sold OPerating Expenses EXPENSES (marketing, administrative) PROFIT Financing costs
Income Statement SALES - EXPENSES = PROFIT •Cost of Goods Sold •Operating Expenses (marketing, administrative) •Financing Costs
Income statement SALES Cost of goods sold OPerating Expenses EXPENSES (marketing, administrative) PROFIT Financing costs axes
Income Statement SALES - EXPENSES = PROFIT •Cost of Goods Sold •Operating Expenses (marketing, administrative) •Financing Costs •Taxes
SALES Income statement Cost of Goods sold GROSS PROFIT Operating expenses OPERATING INCOME (EBIT) Interest Expense EARNINGS BEFORE TAXES (EBT Income taxes EARNINGS AFTER TAXES (EAT) Preferred stock dividends NET INCOME AVAILABLE TO COMMON STOCKHOLDERS
SALES - Cost of Goods Sold GROSS PROFIT - Operating Expenses OPERATING INCOME (EBIT) - Interest Expense EARNINGS BEFORE TAXES (EBT) - Income Taxes EARNINGS AFTER TAXES (EAT) - Preferred Stock Dividends - NET INCOME AVAILABLE TO COMMON STOCKHOLDERS Income Statement
