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    blessings's Avatar
    blessings Posts: 1, Reputation: 1
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    #1

    Apr 11, 2008, 12:48 AM
    Accounting
    What are the steps of coming up with an income statement and what items are incoporated in the income statement
    plonak's Avatar
    plonak Posts: 742, Reputation: 117
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    #2

    Apr 11, 2008, 04:15 PM
    Expenses and Income are the basis of the Income Statement. You need to be finding the final result "Net Income.

    Start with Revenues/Income/Sales subtract returns and receipts. Then Cost of goods sold. Subtract that from the income and that's your Gross Pofit

    Then you start with expenses. Get your total Expenses. Then after that you put "Other Income and Expenses" this is usually interest income and state/Fed taxes. Then you net Gross profit from expenses and there you have Net Income!

    Hope that hells
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