To help explain things easily, let's consider an apparel manufacturer as an example in outlining the major components of the income statement: Sales ... income. Net profit before taxes.

Taxes includes all taxes on the business. Net ... income statements over time, you can chart trends in your operating performance. This helps you chart future goals and strategies for sales ...

Before delving further into operating income, it’s necessary to understand operating expenses. In a company’s income statement ... By subtracting cost of sales from revenue, gross profit ...