Business Administration 1220E Chapter Notes - Chapter 1-2: Statement Of Changes In Equity, Net Income, Retained Earnings

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Raza Khan

Document Summary

The income statement, balance sheet, and statement of retained earnings provide the basic information a: company employee investor lender competitor. Or shareholder needs to gauge financial well-being. The income statement (statement of earnings, consolidated statement of operations) shows how profitable the corporation was during a particular period of time. shows company activity over an entire operating cycle. Differences generate net earnings or net loss. Does not reflect actual cash collected or paid out in this period structure: sales first, then expenses, ending with net income (or loss) company name, name of statement, and date must appear in the title. Net sales: revenue earned by the company from its customers for goods/services sold. Operating revenues: when a company sells services. Cost of goods sold (cogs): total cost of merchandise sold cost of goods available for sale (cogafs) = beginning inventory + purchases.