Question

example basic financial statement of income statement and how managers may used this thanks

Answer 1

The income statement calculates the net income of a company by subtracting total expenses from total income, then the resultant is net income.

Basic example of income statement is,

Particulars	Amount(in $)	Amount(in $)
Revenue
Sales	10,000
Other Income	2,000
Total Revenue		12,000
Expense
Cost of goods sold	3,000
Depreciation	5,00
Wage expense	2,00
Rent expense	3,00
Interest expense	5,00
Supplies expense	4,00
Utility expenses	3,00
Total expense		5,200
Net income		6,800

Managers uses this income statement for,

Making decisions based on this financial information.The data in the income statement helps him by informing decisions that control operating expenses and cost of goods sold to keep profit margins intact. In the given case he can check whether the cost of goods sold, the operating expenses are favourable with respect to profit margin.A whether they need to continue producing the product or not.