The Income Statement Summarizes the profitability of a company during a time period Major Divisions: Revenue cost of goods sold Gross margin=Revenue-COGS General administrative and selling expenses (GS&A) Operating income (or EBIT)=Gross margin-GS&A Debt service Taxable income=EBIT-Interest Corporate Taxes .mcoNet incomelaxable Income-Taxes=retained earnings +dividendsThe Income Statement  Summarizes the profitability of a company during a time period  Major Divisions:  Revenue  cost of goods sold  Gross margin=Revenue-COGS  General administrative and selling expenses (GS&A)  Operating income (or EBIT)= Gross margin – GS&A  Debt service  Taxable income=EBIT- Interest  Corporate Taxes  Net income=Taxable Income-Taxes=retained earnings +dividends •THE COURSE OF FINANCE 2017 SPRING SJTU •8