Income Statement

Definition: Revenues, expenses, net income over a period

Scope:Very BroadDifficulty:Very Easy

Revenues, expenses, net income over a period

Comparative
Fictitious Conglomeration Corporation
Income Statement
For the Year Ended December 31, 2025
Gross Revenue$1,300,000
Less: Sales Returns and Allowances(30,000)
Less: Sales Discounts(20,000)
Net Revenue$1,250,000
Cost of Goods Sold(750,000)
Gross Profit$500,000
Operating Expenses
Salaries & Wages$165,000
Depreciation68,000
Amortization8,000
Rent36,000
Utilities12,000
Insurance8,400
Advertising16,000
Office Supplies4,800
Bad Debt Expense4,100
Impairment of Intangibles5,000
Total Operating Expenses($327,300)
Operating Income$172,700
Other Income / (Expenses)
Interest Income$1,400
Interest Expense(15,600)
Loss on Sale of Equipment—
Gain on Sale of Investments2,000
Total Other Income / (Expenses)($12,200)
Income Before Taxes$160,500
Current Income Tax Expense(31,460)
Deferred Income Tax Expense(4,200)
Total Income Tax Expense($35,660)
Net Income$124,840
Retained Earnings Reconciliation
Beginning Retained Earnings$225,000
Add: Net Income124,840
Less: Dividends Paid(50,000)
Ending Retained Earnings$299,840

Gross Margin: 40.0%  |  Operating Margin: 13.8%  |  Net Margin: 10.0%

DurationN/A

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