FIN219T Income Statement

Net Income from Continuing Operations

Continuing operations is the net income category in the income statements that accounts for a company's daily business activities, referring to the tasks required to make a product or service and deliver it to a customer. To succeed over the long term, a business must consistently generate earnings from operations, and a multi-step income statement reports income from continuing operations separately from non-operating income.

Income Before Taxes (EBT)

Earnings before tax (EBT) is an indicator of a company's financial performance, calculated as revenue minus expenses, excluding tax

Operating Income

Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as cost of goods sold (COGS), wages and depreciation

Interest Expense

The cost incurred by an entity for borrowed funds.

Total Revenue

The total receipts from sales of a given quantity of goods or services.

General and Administrative Expense (G&A)

They are the costs a company must incur to open the doors each day. G&A costs are more fixed than selling costs because they include rent/mortgage on buildings, utilities and insurance. G&A costs also include salaries of all non sales personnel.

Research and Development Expense

This type of expense is incurred in the process of finding and creating new products or services. (Are a type of operating expense and can be deducted as such on a business tax return. )

Operating Expense (OER)

[OER]An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance and funds allocated toward research and development.

Other Operating Expenses

also known as overhead expenses, is the amount which generally does not depend on sales or production quantities. These include, for example, marketing expenses,

Total Other Income and Expenses Net

also known as the "profit and loss statement" or "statement of revenue and expense."The income statement measures a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year.

Non recurring Expenses

loss that is unlikely to occur again in the normal course of a business. {costs include write offs such as design, development, and investment costs, and fire or theft losses, lawsuit payments, losses on sale of assets, and moving expenses.

Cost of Good sold (COGS)

(COGS) are the direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good ex:{ T-shirt retail price is $30.. materials such as buttons sowing machine, the electricity. and labor}

Selling, General, and Administrative Expenses. (SG&A)

(SG&A) are reported on the income statement as the sum of all direct and indirect selling expenses and all general and administrative expenses of a company.

Fiscal year

A fiscal year is an accounting period of 365(6) days that does not necessarily correspond to the calendar year beginning on January 1st. The fiscal year is the established period of time when an organization's annual financial records commence and conclude. ex:{The financial operations of the federal government are carried out in a fiscal year that begins on October 1 and ends on September 30. Therefore the government's fiscal year for 2008 would begin on October 1, 2007 and end on September 30, 2008.}

Minority Interest

A minority interest, which is also referred to as non controlling interest (NCI), is ownership of less than 50% of a company's equity by an investor or another company.

Income Tax Expense

A tax expense is a liability owing to federal, state/provincial and municipal governments

Earnings Before Interest and taxes

An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest

Equity Earnings or Loss Unconsolidated Subsidiary

An unconsolidated subsidiary is a company that is owned by a parent company, but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, this type of company appears in the combined financial statement as an investment.

Gross Profit

Is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. [Gross profit is a company's total revenue (equivalent to total sales) minus the cost of goods sold. COGS]

Selling Expense

can be broken down into direct and indirect costs associated with the selling of a product. Direct expenses only occur when the product is sold and include shipping supplies, delivery charges and sales commissions. Indirect expenses are the costs that occur throughout the manufacturing process and after the product is finished.[Ex: Indirect expenses include product advertising and marketing, telephone bills, travel costs and the salaries of sales personnel.]