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#Income statement template word free how to

Operating Profit: Income derived after deducting Cost of Goods Sold and Operating Expenses from Gross Revenue.

read more relate to indirect costs of the company’s product, which is being sold and whose revenue is generated as a part of the Gross Revenue. Therefore, they are readily available in the income statement and help to determine the net profit.

Operating Expenses: These operating expenses Operating Expenses Operating expense (OPEX) is the cost incurred in the normal course of business and does not include expenses directly related to product manufacturing or service delivery.

However, it excludes all the indirect expenses incurred by the company.

Gross Profit: Profit derived by deducting the Cost of Goods Sold Cost Of Goods Sold The Cost of Goods Sold (COGS) is the cumulative total of direct costs incurred for the goods or services sold, including direct expenses like raw material, direct labour cost and other direct costs.

Cost of Goods Sold: All direct expenses in the manufacturing or development of a product are accounted for under this header.All expenses related to the sales are deducted after this starting point in the income statement. Gross Revenue: This is the earning from Gross Sales Gross Sales Gross Sales, also called Top-Line Sales of a Company, refers to the total sales amount earned over a given period, excluding returns, allowances, rebates, & any other discount.Source: Income Statement Template () Explanation

#Income statement template word free how to

You are free to use this image on your website, templates etc, Please provide us with an attribution link How to Provide Attribution? Article Link to be Hyperlinked This Net Profit is important for all company’s reporting purposes, and this profit is used for further allocation of next year’s provisions and reserves and payment of dividends to shareholders. The attached excel template of an income statement is to be used for understanding how to calculate Net Profit from Gross Sales reported by a company. An income statement reports a company’s income, expenses and thus derives its profit generated for a specific period (generally for a financial year).