Service cost of goods sold cogs the cost of producing

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Unformatted text preview: g the company’s product or service • Cost of Goods Sold (COGS) – The cost of producing or acquiring the goods or services to be sold • Operating Expenses – Expenses related to marketing and distributing the product or Expenses service and administering the business service • Financing Costs – The interest paid to creditors and the dividends paid to preferred The stockholders stockholders • Tax Expenses – Amount of taxes owed, based upon taxable income 3-6 Foundations of Pearson Chapter 3 Understanding Financial Statements and Cash Flows Income Statement Sales Less cost of goods sold = Gross profit Less operating expenses = Operating income Less interest expense = Earnings before taxes Less corporate taxes = Earnings before preferred dividends Less preferred stock dividends = Net income available to common stockholders 3-7 Foundations of Pearson Chapter 3 Understanding Financial Statements and Cash Flows Starbucks Corporation Income Starbucks Statement 2003 ($M) Statement Sales Cost of Goods Sold Gross Profit Operating Expenses Marketing expenses and general and Marketing Administrative expenses $227 Administrative Depreciation Expense 206 206 Total Operating Expenses Operating Profits Interest Expense Interest Earnings before taxes Income taxes Net income 3-8 Foundations of $4,076 3,2...
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This document was uploaded on 01/16/2014.

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