Article · Guide
Income Statement
Corporate Finance Institute · corporatefinanceinstitute.com Free Beginner
A line-by-line guide to how an income statement (P&L) is built: revenue, cost of goods sold, gross profit, operating expenses, depreciation, interest, tax and net profit.
- Gross profit is revenue minus cost of goods sold.
- Operating expenses come next, then depreciation, interest and tax.
- Lay it out in the same order every month so periods can be compared.
