ing revenues PARY 1 Corsticton Mansgement accounting principles from one period to another (e.g., a method of recording and reporting information). Accounting documentation that has a consistent base provides information needed for making business decisions that enable manage- to guide a company on le course Satements are the primary means of communics statement. The belance sheet shows the company and potential for future growth. The income statement shows the sources of a company's production costs other expenses, and income INCOME STATEMENT A company's income record ofits earings or losses for agi period. This can be thought of as a moving picture of company performance. It shows sll ofthe revenue a company eamed and all ofthe costs and expenses a ‘company spent during a specific period, usually the fiscal year. It also secounts for the effects of some basic accounting principles such as depr the norma a som om investmients, Operating income is particul ry based on a taxes are the sum of operat 1 (oss) ater taxes iter @ Construction Accounting: 308 TON CORPORATION [STATEMENT OF INCOME AND RETAINED EARNINGS ___For the Years Ended December 31, 2001 2000, 1999) $$174,063,148 $163,573,258 —$210,002.272 787 153935,103 200,070,826) 4058361 4,698,155 Revenue (Notes 10 and 16) Cust of revenue we expenses (Notes | and 10) _ 8062623. _ 6,777,840 Income (loss) from operations 340,20) 2,139,685) Ocher income (expense) Tere income 319,797 66 4 668,928 Ierest expense (485937) (250,996) comme (expense) 37784 115,246) 1,590,480 §..574.586) — $_2:340,106 $4,664,800 $464,800 BEGINNING RETAINED EARNINGS ENDING RETAINED EARNINGS FIGURE 9.4 Saripe income statement (The numerous noes that eocomparied he stalement are not shown ere set Apmpery oF ‘ouned by a company. A-company’s tion ata spe Financial condition, Because sometimes referred to as a ‘yea, but it may aso be presented quart nay information on what the company owns (its assets), what 4 debi owed: ), and the valu of the bu is derived from the fact that these at qty 's equity. A right, claim, or interest is property n balance, Assets sand owner’ Assets Assets are econo 5 that are expected to produce economie benefits for theie owners. They ar se sheet (Fig, 9.2). The assets of ac ‘ment and pl les, equip- construct projects