I N C O M E S T AT E M E N T

DILA PUTRI PURNAMA SARI

TA B L E O F C O N T E N T S

1 B A S I C T H E O RY 4 I N C O M E S TAT E M E N T F O R M AT
Definition and general description of income Various income statement methods
statement

2 COMPONENTS 5 EXAMPLES
Component of the income statement Examples of the income statement and the answers

3 BENEFITS AND OBJECTIVES

The benefits and objectives of the income
statement

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 Basic Theory
INCOME STATEMENT

The income statement is one of the financial statements that shows the income, expenses, and profit or loss
generated by the company during a certain period of time. Because net profit or loss must be calculated and
reported to the owner of capital before other financial statements can be implemented. This calculation is also to
show profitability to investors and creditors who have an interest in the company, and find out how efficient the
company is in generating profits from total revenue. This is a consideration for making a decision regarding the
report that will be determined in the future

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COMPONENTS
The income statement consists of several constituent
components such as:
1. INCOME OR SALES
Income is money that is obtained thanks to
some sales transactions of goods and services
from the company's customers. The greater the
income obtained, a large profit will also await
the company. From the results of this income
2. COST OF GOODS SOLD
serves to expand, pay off debt and cover
Cost of goods sold is the cost of goods sold by company costs.
each company in producing products or
services for customers. Composers of cost of
goods sold are raw materials, labor costs,
work-in-process inventory and finished goods 3. GROSS PROFIT
inventory.
Gross profit is the final estuary for which a company
The purpose of calculating the company's
operates its business. The achievement of the gross
COGS is to determine the amount of
profit target is one of the successes in running a
expenditure in producing goods and services.
company. Gross profit is the profit obtained by a
company after deducting the cost of manufacturing and
selling products.
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4 . O P E R AT I N G E X P E N S E S
Operating expenses are all expenses related to the
company's operational activities. Operating expenses
include water, electricity, telephone expenses, marketing
expenses, sales expenses, salary expenses, rental expenses.

5. FINANCIAL INCOME
Financial income is a result obtained from interest
income. Interest from company cash held in banks
and profit sharing from company deposits.

6. OPERATING PROFIT
Operating profit is the profit obtained by a company after
gross profit is reduced by operating expenses. Operating
profit is net income which is a measure of a company's
success.

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 7. PROFIT BEFORE TAX
Income before tax is the company's income which is a
deduction from the company's operating income with
additional financial expenses plus financial income
which provides investment analysis information that is
useful in evaluating the performance of the company's
8. NET PROFIT operations without any tax expense.
Net income is profit before income tax reduced by
the tax burden paid by a company. Net profit is an
excess of net income over all company expenses.

9. TAX EXPENSE
Tax expense is a number of dependents that must be
borne by the company as a tax burden. The tax is
imposed by the government on a company for the
benefit of the people such as financing the development
of an area.

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BENEFITS AND OBJECTIVES
F I N A N C I A L E VA L U AT I O N
M AT E R I A L S
When the company has been running for a
month or a year there must be a financial
transaction there. Both of which produce losses
and profits. Well, the accumulation of the total
finance will be the company's profit and loss in
a particular month or year.
If the finances are recorded in full with their
transactions, the employer can clearly know the
origin of the emergence of the financial data.
So that the calculation can be done more
thoroughly when evaluating later.
Knowing Company
Development
A developing company can be seen from the
financial condition in the company. If profits or
profits are greater than losses, of course the
company's prospects going forward will
increase. Especially if coupled with an increase
in production equipment, human resources and
beyond.
Therefore, to find out the development of the
company, superiors must know the company's
profit and loss data. Therefore, an income
statement is made that can be used as a
benchmark for development or vice versa.
Set Superior Policy
Steps
The third function of the income statement is
to regulate supervisory policy steps related to
financing. If in the report, the most losses due
to production equipment that does not work,
then the following year, can be replaced with a
more profitable application.
Likewise, if the profit is high from product A,
not B, then in the following year, production
activity A is more enhanced than product
production B.
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I N C O M E S TAT E M E N T F O R M AT

Single Step Multiple Step

Income Statement Income Statement
The format in this form is that at the beginning of the The format in this form is the operation transactions with
report includes all income and profits including in the form non-operation transactions are separated. Besides
of operating elements, then followed by all costs and losses comparing costs and expenses with related income. If
that fall into the category of operations. operating profit is issued, a difference will be seen
between incidental or unusual activities and ordinary
The difference between gross profit and income tax is activities.
referred to as net profit, while the difference between
income and profit and costs and losses results in gross
profit.

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EXAMPLES
Some examples of Income Statement to make us know the different
between Single Step Method and Multiple Step Method
SINGLE STEP
M U LT I P L E S T E P
THANK YOU!