Investigating Financial Statements
• Income Statement o After all operating expenses are deducted from gross profit or the contribution margin you arrive at “income from operations” o Next you must account for any non-operating income/expenses. o This is then added and subtracted from income from operations to arrive at net profit
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Investigating Financial Statements Typical Income Statement
COGS
Net Sales
Minus
Other Expenses Net Profit
Gross Profit or
Minus
Contributi on Margin
Equals
Equals
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