Course 106:
A Tour through the Income Statement
In this course
1 Introduction
2 Revenues
3 Expenses
4 Profit

When you turn to the financial-statements section of a company's annual report or 10-K form, the masses of numbers can be bewildering and intimidating. But if you know what to look for, these financial statements can be a gold mine of information. In the next three courses, we'll take you on a brief tour through the three major financial statements, focusing on the most important numbers. The income statement is generally the first financial statement you'll encounter in an annual report or SEC filing. It also contains the information you'll most often see mentioned when a company announces its results for a year or a quarter--figures such as revenue, earnings, and earnings per share, or EPS. In essence, an income statement tells you how much money a company brought in (its revenues), how much it spent (its expenses), and the difference between the two (its profit) over a specified period of time--usually a year or a quarter. The exact information presented in an income statement depends partly on the type of business the company is in, and no company's income statement will likely contain all these items. But it is a good idea to be familiar with the most common items you will encounter.

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