Financial Statements
Income Statement
Has Calculator
What it means
A report of revenue, expenses, and profit over a period. Also called the P&L.
Why it matters
Tells you whether the business made money and where profit came from or leaked out.
How to calculate — with Cawan's Shoes
Revenue − COGS = Gross Profit. Gross Profit − Operating Expenses = Operating Income. Operating Income − Interest − Taxes = Net Income. Example: Cawan's Shoes earns $500M revenue, COGS $250M → gross profit $250M. Opex $150M → operating income $100M. Interest $10M, taxes $20M → net income $70M.
What's at stake if you ignore this
Ignored: you can't tell profitable products from money-losers, and investors lose trust.