An income statement shows the ability of a company to generate profit while a balance statement shows a business’s assets and liabilities. Discover the importance and how to read them.

A company's income statement shows how much money it brought in as revenue or sales, how much it spent on expenses, and how much profit or loss -- also called net income -- was generated for a ...

An income statement shows whether you are making any money. It adds up all your revenue from sales and other sources, subtracts all your costs, and comes up with the net income figure, also known ...

Income statements, balance sheets and cash flow statements. If you're running a business, you probably have some knowledge of basic financial statements and how to use them. But do you know why ...

Common size income statement analysis To perform a common size income statement analysis, you’ll compare every line on your profit and loss statement to your total revenue.

3. Third is your profit and loss (PnL) or income statement. This calculates your revenue, expenses, depreciation, interest charges and taxes to determine your net income.

The cash flow statement and the income statement are completely different financial statements. Cash Flow: Refers to the net amount of cash generated by a company over a specific period of time.