The income statement
From revenue down to net income.
5 min · Beginner · Lesson 2 of 10
Step 1 of 4
Top line to bottom line
- Revenue (the top line): total sales.
- Minus cost of goods sold = gross profit.
- Minus operating expenses (salaries, research, marketing) = operating income.
- Minus interest and taxes = net income (the bottom line).
For entertainment and education, not investment advice.