Excel Multi Step Income Statement Example

Income statement templates are print ready tools that companies can use to record present and analyze the operation of the businesses for a given period usually one financial year.

Excel multi step income statement example. Example 2 multi step income statement. The income statement is generally a record of income received and expenses incurred over that period. As you can see this multi step income statement template computes net income in three steps. The operating section and the non operating sections.

The operating section contains information about revenues and expenses of the principle business activities. It calculates the operating income and then adjusts for interest expense and income tax to give the income from continuing operations. All operating revenues are grouped at the top of the income statement. A multi step income statement also includes a line item for gross profit.

Compute income from operations gross profit operating expenses. As compared to a single step income statement a multi step income statement examples are more complex. Other major financial statement samples include the balance sheet cash flow statement and stockholder s equity statement. It first calculates the gross profit by subtracting cost of goods sold from net sales.

With a multi step income statement operating revenue and expenses are separated from non operating revenue and expenses. The multi step income statement format comprises a gross profit section where the cost of sales is deducted from sales followed by income and expenses to reach an income before tax. 14 multi step income statement templates an income statement also referred to as the profit and loss statement is one of the major financial statements used by accountants and businessmen. The total sales of the company the cost of goods sold cogs and the resulting gross profit.

The gross profit and the operating profit figures are calculated in the operating section of a multi step income statement. For example multi step income statement of the retailer will have the figure of total sales that includes all the merchandise sales that are made during that period and cost of goods sold includes all the expenditures incurred while purchasing shipping or conveyance and getting the merchandise ready for sale. Compute gross profit total sales cost of goods sold step 2. 1 the simplified single step income statement groups all of the revenues and expenses except the income tax expense.

2 the multi step income statement example breaks out the gross profit and operating income as separate lines. Let s take a look at a multi step income statement example.