余宝芳 2015/12/18 9:23:38
the major categories of the income statement for a merchandising company are revenue,cost of goods sold and operating expenses .First,in the revenue section,sales returns and allowances are deducted from the gross sales to yield net sales.Second,by deducting the cost of goods sold from the net sales,we arrive at gross profit on sales.The operating expenses are then deducted from gross profit to obtain the net income for the period.The income statement for a service company is different a little ,While that for a manufacturing company will be complicated.