Income Statement

One of the major financial statements focused on a business’s revenues and expenses in a particular period. It is also known as the profit and loss statement. The income statementOne of the major financial statements focused on a business’s revenues and expenses in a particular period. It is also known as the profit and loss statement. The income statement includes the gross profit, earnings before tax, and net profit.Tax Returns: The forms a business... includes the gross profitThe profit a business makes after deducting the costs involved in making, providing, and selling the goods and services. In an income statement, it is the sales minus the cost of goods sold.Gross profit = Revenue - Cost of Goods Sold, earningsTotal earnings received by a business based on the U.S. Income Tax Return. The financial numbers of these earnings depend on the type of business, but can include income, guaranteed payments, compensation, interest, depreciation, elective deferrals, and contributions.For further details on how to calculate earnings... before tax, and net profitAlso known as net income or net margin, the net profit is the net income on an income statement. It is the revenue minus the cost of goods sold, expenses, interest, and taxes.Net Profit = Revenue – Cost of Goods Sold – Expenses – Interest - Taxes.Tax Returns: The forms a business makes on an annual statement of income and personal circumstances sent to the IRS to assess the liability for tax. Most businesses on Vetted Biz will reference the information on their most recent tax returns to provide the most accurate data.