Business Income statements

Fixed costs

Fixed costs are expenses that remain the same from one period to the next.

gross profit

Gross profit is the amount of money made on a sale minus the cost of goods or production, but before the deduction of other costs such as rent or salaries.

gross profit margin

Gross profit margin is the ratio of gross profit to net sales.

Revenue

Revenue is the amount of sales during a given period, including discounts and returned merchandise.

Business income statement

A business income statement is a document of all revenues and operating expenses for a business during a given period.

cost of goods sold

Cost of goods sold is the amount paid by the seller for the goods sold.

net income

Net income is the amount left over after subtracting operating expenses from gross profit.

net profit margin

Net profit margin is the ratio of net income to net sales.

operating expenses

Operating expenses are the total cost of running a business

variable costs

Variable costs are expenses that change from one period to the next.