Definition and Example of Income Statement

income statement is a report that is part of the financial report that includes information about the operating results of the company, both the income and expenditure during certain periods of.
Income statement is quite important because this report can be used as a tool to predict future cash flows, many pemekai financial statements using the income statement to predict future cash flows, such as investors and creditors. investors and creditors need to predict future cash flows the company before they inject their funds to the Company, of course, investors and creditors do not want to inject funds to the companies that they value the cash flows or kenerjanya ugly and the risk is too great.

How is the income statement can predict the company's future cash flows ??
We see that when the company experienced a consistent increase in revenue, although not significant but consistent from year to year, it can be used by investors and creditors as the belief that cash flow, revenue, and profit is good, even better if you go up, though not significant. I think that's one of the expectations of investors and creditors to see the income statement of the company.

Examples of income statement

Not need further ado, just give me an example of the income statement. Below are two examples of the income statement, income statement and a single-step income statement multiple step

It is known that Estelle Company has the following data:

     sales amounted to 5,000,000
     rental income 2,500,000
     beginning merchandise inventory, January 1, 2012 amounted to 550,000
     end merchandise inventory, December 31, 2012 amounted to 560,000
     purchase 1,200,000
     expenditures for transport and entry transportasi- 100,000
     expenditures for salaries and commissions 350,000 sales
     advertising expenditures for 70,000
     expenditures for transport and transport-out 80,000
     depreciation of sales equipment 20,000
     expenses for telephone 30000
     expenditures for legal services 100,000
     expenses for insurance 15,000
     building depreciation 20,000
     office equipment depreciation 10,000
     100,000 income tax

additional information
There are discounts for 20,000 sales and discounts on the purchase of 14,000.
Examples of profit-offs as follows:

Examples income statement single-step
Estelle Company
Income statement
As of December 31, 2012
revenue
      Net sales 4,980,000
      rental income 2,500,000
          7.48 million total revenue
load
      cost of goods sold 1.276 million
      selling expenses 550,000
      administrative expense 145,000
      income tax expense 100,000
          total load of 2.071 million
Net profit of 5.409 million
Examples income statement multiple step
Estelle Company
Income statement
As of December 31, 2012
sales revenue
     5,000,000 sales
     Sales discounts 20,000
        net sales revenue 4,980,000
Cost of goods sold
     beginning merchandise inventory 550,000
     purchase 1,200,000
        discounts on the purchase of 14,000
     net purchase of 1.186 million
     transport costs and transport-enter 100.000 1.286 million
     goods available for sale 1.836 million
     end merchandise inventory 560,000
           Cost of goods sold 1.276 million
     Gross profit on sales of 3.704 million
operating expenses
   selling expenses
     salaries and sales commissions 350,000
     advertising expenses 70,000
     load transport and transport-out 80,000
     depreciation of sales equipment 20,000
     phone load 30,000 550,000
   administrative burden
     load of 100,000 legal services
     load insurance are 15,000
     building depreciation 20,000
     office equipment depreciation 10,000 145,000
                                                                                                                              695,000
     Profit from operations 3.009 million
Income and other benefits
     rental income 2,500,000
                                                                                                                              5.509 million
Expenses and other losses
      (none) (none)
Profit before income tax 5.509 million
     100,000 income tax
Net profit of 5.409 million