Sample Income Statement

Investing for Beginners

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Sample Income Statement

Investing Lesson 4 - Analyzing an Income Statement

More of this Feature

• Introduction
• Income Statement
• Revenue / sales
• Cost of Goods Sold
• Gross profit
• Gross margin
• The first three lines
• Operating Expenses
• R&D Expense
• SG&A Expense
• Goodwill Charges
• Extraordinary Events
• Accounting for extraordinary events
• Oper. income/margin
• Interest income and expense
• Interest coverage ratio
• Depreciation expense
• Accum. Depreciation
• Straight-line Method
• Accelerated and Sum of the Years' Digits Method
• Dbl Declining Balance
• Comparing Depr. Mths
• EBITDA
• Income taxes
• Minority Interests - cost, equity, and consolidated methods
• Unreported earnings
• Continuing operations
• Accounting changes
• Preferred dividends
• Net income applicable to common shares
• Net profit margin
• Basic vs. Diluted EPS
• Hiding share dilution
• Share repurchases
• Return on Equity- ROE
• Asset turnover
• Return on Assets- ROA
• Projecting earnings
• Formulas & Calculations
• Putting it together

• Segment 2

Related Resources

• Investing Lesson 1
• Investing Lesson 2
• Investing Lesson 3
• More Lessons

From Other Guides

• Extraordinary Items on the Income Statement

Elsewhere on the Web

• Financial Ratios on Sample Income Statement
• Financial Ratio Calculator
• Financial Ratio Analysis on a Sample Income Statement

Sample Income Statement 1

Below is a sample income statement taken from Yahoo! Finance for Microsoft.

Microsoft Consolidated Income Statement
Fiscal year ended	2001	2000	1999
TOTAL REVENUE	$28,365,000,000	$25,296,000,000	$22,956,000,000
Cost of Revenue	$5,191,000,000	$3,455,000,000	$3,002,000,000
Gross Profit	$23,174,000,000	$21,841,000,000	$19,954,000,000

Operating Expenses
Research And Development	$4,307,000,000	$4,379,000,000	$3,775,000,000
Selling, General And Administrative Expenses	$6,957,000,000	$5,742,000,000	$5,242,000,000
Non Recurring	N/A	N/A	N/A
Other Operating Expenses	N/A	N/A	N/A

Operating Income
Operating Income	$11,910,000,000	$11,720,000,000	$10,937,000,000
Total Other Income and Expenses Net	($397,000,000)	($195,000,000)	$3,338,000,000
Earnings Before interest and Taxes	$11,513,000,000	$11,525,000,000	$14,275,000,000
Interest Expense	N/A	N/A	N/A
Income Before Tax	$11,513,000,000	$11,525,000,000	$14,275,000,000
Income Tax Expense	$3,684,000,000	$3,804,000,000	$4,854,000,000
Equity Earnings or Loss Unconsolidated Subsidiary	N/A	N/A	N/A
Minority Interest	N/A	N/A	N/A
Net Income from Continuing Operatings	$7,829,000,000	$7,721,000,000	$9,421,000,000

Nonrecurring Events
Discontinued Operations	N/A	N/A	N/A
Extraordinary Items	N/A	N/A	N/A
Effect of Accounting Changes	N/A	($375,000,000)	N/A
Other Items	N/A	N/A	N/A
Net Income	$7,829,000,000	$7,346,000,000	$9,421,000,000
Preferred Stock And Other Adjustments	N/A	N/A	N/A

Net Income Applicable To Common Shares	$7,829,000,000	$7,346,000,000	$9,421,000,000

It's important to note that not all income statements look alike, although they necessarily contain much of the same information. As we work our way through various income statements, you will inevitably find they are much simpler and comparable than may appear at first glance.

Sample Income Statement 2

Here is a sample income statement from the most recent Abercrombie and Fitch annual report. It is one of the statements we will be analyzing in segment two.

Abercrombie & Fitch Consolidated Statements of Income *(Thousands except per share amounts)*
Fiscal year ended	2001	2000	1999
Net Sales	1,364,853	1,237,604	1,030,858
Cost of Goods Sold, Occupancy and Buying Costs	806,816	728,229	580,475
Gross Income	558,034	509,375	450,383
General, Administrative and Store Operating Expense	286,576	255,723	209,319
Operating Income	271,458	253,652	242,064
Interest Income, Net	(5064)	(7,801)	(7,270)
Income Before Income Taxes	276,522	261,453	249,334
Provision for Income Taxes	107,850	103,320	99,730
Net Income	168,672	158,133	149,604
Net Income Per Share:
Basic	$1.70	$1.58	$1.45
Diluted	$1.65	$1.55	$13.39