lecture_13-_income_statement

lecture_13-_income_statement - MA526 13-The Income...

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MA526 13-The Income Statement Provides information about a company’s trading activities. Compares income from trading with (only) the costs incurred in generating that income. Where the balance sheet shows a “snapshot” of the company at a particular time the income statement and changes in equity set out how the business has progressed from one balance sheet to the next.
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A simple Income Statement £000 Revenue (formerly called turnover) 1000 Cost of sales (300) Gross profit 700 Distribution Costs (50) Administrative Expenses (150) Operating profit 500 Finance Income 200 Finance Costs (100) Net profit before tax 600 Taxation (220) Net profit after tax 380
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£000 Net profit after tax 380 *Dividend 250 *Retained profit for the year 130 *Retained profit b/f 460 *Retained profit c/f 590 (*previous accounting standard – so seen in old questions but no longer correct) Earnings per share 47 pence (implies 808511 shares) Note that three different measures of profit are calculated. http://ar2010.tescoplc.com/summary-report/summary- financial-statement/~/media/Files/T/Tesco-Annual- Report-2009/Attachments/pdf/Full-Review.pdf
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Cost of Sales Reflects cost of raw material, components, wages and salaries in producing the good. Should include changes in level of stock.
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This note was uploaded on 06/07/2011 for the course MA 826 taught by Professor Loba,millet during the Spring '11 term at Kent Uni..

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lecture_13-_income_statement - MA526 13-The Income...

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