Topic: What is Income Statement || What is EPS || Story that Income Statement Tells
- Income Statement shows the company’s revenues and expenses during a particular period.
- Revenue – Expenses = Net Income
- Earning per Share (EPS) = Net Income/Number of Share
If a hypothetical Income Statement of a Tea Stall is considered.
Then, followings are the examples of the components of Income Statement
Revenue – Money that comes from selling Tea
Cost of goods sold – Sugar, Tea bag, milk etc.
Operating expenses – Salary, Rent, Electricity, Advertisement etc.
Finance Income – Interest income from Fixed Deposit
Finance Expense – Interest expense on loan
Tax – Paid to Government at a specific rate
Presented by Shihab Alam Khan on behalf of Finance School
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