{"id":2023,"date":"2018-03-27T21:50:34","date_gmt":"2018-03-27T21:50:34","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/?post_type=chapter&#038;p=2023"},"modified":"2024-04-25T02:50:51","modified_gmt":"2024-04-25T02:50:51","slug":"introduction-to-income-statements","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/chapter\/introduction-to-income-statements\/","title":{"raw":"Introduction to Income Statements","rendered":"Introduction to Income Statements"},"content":{"raw":"<h2>What you'll learn to do:\u00a0Explain how an income statement is used to evaluate a profit management path<\/h2>\r\nIn the next sections, we\u2019ll focus on accounting tools, which help decision-makers better understand what is happening within the business. The income statement, also known as the profit and loss statement or statement of operations, is the foundation for this financial analysis. It provides a snapshot of a company\u2019s financial performance over a specified period of time: a month, a quarter, year-to-date, and annually.\r\n\r\nIn using the income statement, managers are equipped to make decision targeted at improving the firm\u2019s profitability. There are four components that make up this profit management path:\r\n<ul>\r\n \t<li>Net Sales<\/li>\r\n \t<li>Cost of Goods Sold (COGS)<\/li>\r\n \t<li>Gross Margin<\/li>\r\n \t<li>Operating Profit Margin<\/li>\r\n<\/ul>\r\nThese are all components of the income or profit and loss statement.","rendered":"<h2>What you&#8217;ll learn to do:\u00a0Explain how an income statement is used to evaluate a profit management path<\/h2>\n<p>In the next sections, we\u2019ll focus on accounting tools, which help decision-makers better understand what is happening within the business. The income statement, also known as the profit and loss statement or statement of operations, is the foundation for this financial analysis. It provides a snapshot of a company\u2019s financial performance over a specified period of time: a month, a quarter, year-to-date, and annually.<\/p>\n<p>In using the income statement, managers are equipped to make decision targeted at improving the firm\u2019s profitability. There are four components that make up this profit management path:<\/p>\n<ul>\n<li>Net Sales<\/li>\n<li>Cost of Goods Sold (COGS)<\/li>\n<li>Gross Margin<\/li>\n<li>Operating Profit Margin<\/li>\n<\/ul>\n<p>These are all components of the income or profit and loss statement.<\/p>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-2023\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Introduction to Income Statements. <strong>Authored by<\/strong>: Patrick Williams. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":83755,"menu_order":6,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Income Statements\",\"author\":\"Patrick Williams\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"9303d102-0fc5-4754-9c53-12d1d435d2a5","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-2023","chapter","type-chapter","status-publish","hentry"],"part":2010,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/users\/83755"}],"version-history":[{"count":6,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2023\/revisions"}],"predecessor-version":[{"id":4987,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2023\/revisions\/4987"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/parts\/2010"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapters\/2023\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/media?parent=2023"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/pressbooks\/v2\/chapter-type?post=2023"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/contributor?post=2023"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-retailmanagement\/wp-json\/wp\/v2\/license?post=2023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}