prepare income statement

Preparing an income statement requires 8 steps to follow.

  • 1st Step: Calculate Net Sales
  • 2nd step: Calculate Cost of Goods Sold
  • 3rd Step: Calculate Gross Profit
  • 4th Step: Calculate Operating Expenses
  • 5th Step: Calculate Operating Income
  • 6th Step: Calculate the Net Income before Interest & Taxes (EBIT)
  • 7th Step: Calculate EBT
  • 8th Step: Calculate Net Income
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