For a retail company, one of the main expenses is the cost of goods sold. So, you'll see Cost of Goods Sold broken out into its own section, with Gross Profit calculated … See more

This section is where you include all your operating expenses such as advertising, salaries, rent, utilities, insurance, legal fees, accounting fees, supplies, research and developme… See more

In the multi-step income statement, the operating income is calculated as the Gross Profit minus the total Operating Expenses. In general, interest expense and income tax expense ar… See more

This is the "bottom line", calculated as the Operating Income minus interest expense and income tax (and plus/minus non-operating revenues, expenses, gains, and losses, if th… See more

Some forms of income, such as the sale of a building you are no longer going to be using, are included "below-the-line" (i.e. below the reported Net Income from Continuing … See more