Tip: Generally, an income statement includes things like: Sales Cost of Goods/Services Sold Gross Profit Operating expenses Operating income Non-operating expenses Non-operating income Net income ...

Net Income Example In this fictional example, Company A has more expenses than Company B. You can see how Company B has more net income as a result.

Final net income at the bottom Example: Company A generated $1 million in product sales in 2025. After subtracting $240,000 in product costs, the company reported a gross profit of $760,000.

An income statement shows a business's revenue, expenses, gains, and losses, starting with revenue and ending with net income. Other financial statements used by businesses are the balance sheet ...