Income Statement Template

By | April 8, 2016

An income statement also referred to as the profit or loss statement, statement of financial performance or the statement of operations. Income statement is one of the three main financial statements of a company or business namely income statement, balance sheet and cash flow statement. As company works under the board of governors or investors the income statement is the record of company’s profit or loss under a period of time. Income statement is discussed briefly as follows.

An income statement of a business or a company projects the revenue collected from the sales and expenses that the company faced. Income statement is simple yet very important for the company as it brings the income and expenses in account. The two parts of the statement top line and the bottom line are explained as under. The top line shows the money received from the sales of the production or services to the public or client before expenses are taken out, while the bottom line is the sum obtained after the revenues and the expenses are accounted for i.e. the cost for the production, the write offs and the taxes are accounted for which gives the net profit. The defined top and bottom lines explain how the managers or business owners come to know the profitability or the loss of the firm.

An income statement is similar to the cash flow statement but it differs from the balance sheet in terms of the time frame. The balance sheet gives the details for a single instance or deal while the income statement gives the brief detail under a specific period of time. Income statements are generated quarterly and annually according to the fiscal year of the company.

And as for the charitable institutions they do not produce income statements instead they produce a similar statement that explains the income from the fund raisers and donations and other sources and their expenses. This statement is commonly known as the statement of activities.

Now, we discuss the details of writing the income statement. There are two commonly used approaches to produce an income statement. The single step income statement is simple to produce as it involves totaling the revenues (top line) and subtracting the expenses to find the bottom line for a specific period of time. The second approach is rather complex and known as the Multi Step income statement. As the name implies it involves multiple steps to produce the bottom line. First step is gross profits and then the operating expenses are calculated. These operating expenses are deducted from the gross profit yielding the income of operations which is further added up with other revenues. The sum is income before taxation and the final step is to deduct the taxes and the result is net income for specific period of time.

In a nutshell Income Statement is the cash monitoring statement that should help investors and stakeholders determine the past financial performance and condition of company, future performance and the ability to generate future cash inflows through report of income and expenses.

Here is preview of a Free Sample Income Statement Template created using MS Word,

Income Statement Template

Here is download link for this Income Statement Template,
download template

Related Word Templates

  • Financial Statement TemplateFinancial Statement Template A Financial Statement is designed to portray a clear picture of the financial health of the company. The financial reports are prepared on monthly, quarterly and annual basis. The financial reports are of different types, including income statement, balance sheet and cash flow statement. It is a professional way to report your income sources and total income spent. It is an appropriate […]
  • Copyright Statement TemplateCopyright Statement Template This is quite obvious from the title that it’s a statement that informs others not to copy a material or a product as the producer or the owner has registered it to his name. Brief Description: It is very much possible that when a person invents or writes something remarkable or unique, there grows a competition in the market making others to do the same or copy the style. This […]
  • Opening Statement TemplateOpening Statement Template In any judicial trial or court hearing, the first step to road towards the proceedings of the case is put forward by the lawyer known by the term opening statement. Here all the base facts and events which have occurred are presented in front of the court; the jurors and the judge himself / herself watches over this statement to proceed with the case. Even though the opening statement […]
  • Capability Statement TemplateCapability Statement Template A statement that defines the capabilities, skills, achievements and accomplishments of a company is usually known as capability statement. This is an official document presented by the company that wants other companies or businesses to do business with it. Elements of a Capability Statement: Company overview Description of the products and services a company is […]
  • Artist Statement TemplateArtist Statement Template An artist statement is a short piece of writing drafted with a creative mind behind it to complement a particular painting(s). The artist statement should be written carefully, because it is an important selling tool and helps you to promote and explain your work to people interested in your paintings; they can be potential buyers, stewards of exhibition, fellow artists, or casual […]
  • Closing Statement TemplateClosing Statement Template Closing statement can be defined in many ways i.e. the conclusion at the end of a case in court, the final financial statement at the end of each quarter or the final documents that are presented to both parties in case of a real estate purchase or selling. Closing statement is used in so many areas and fields that it’s not possible to explain it related to one field and the writer […]
  • Credit Card Statement TemplateCredit Card Statement Template With the modernization of business and banking techniques mankind was introduced with a new way of payment without carrying cash with you all time instead the idea was that anyone can carry a card with a person’s business details attached with it, making him/her able to business, or go shopping with one less thing to worry about. With ease there come some technical difficulties, I […]
  • Brand Positioning Statement TemplateBrand Positioning Statement Template In the modern age of technology, every man tries to look different than others and likes to call himself a unique and special person. The one special thing to look like this is to have a brand name. In line with the United States Promoting Affiliation, a brand can be “a name, term, design, symbolic representation, or any element which determines one dealer great. It is type of the […]
  • Normative Statement TemplateNormative Statement Template Business progresses on various factors and each one of these factors is of pivotal importance in the flourishing of the business. Honest, accuracy, positivity, time management and punctuality are some of the characteristics of a successful business man but there are other certain technical characteristics that one should develop to be successful in this competitive field and being able […]
  • Bi-conditional Statement TemplateBi-conditional Statement Template A Bi-conditional statement is a mathematical and logical construct according to which, one statement is true if and only if another statement is true. These kinds of statements are used in the geometric and formal logic proofs. The truth and false of the statements is based on the truth and false of both statements. If the both statements are true, the table will be true, and if the […]