Final answer:
Internal users of a company's income statement include investors and operation managers. Investors assess profitability and make investment decisions, often with more detailed information. Operation managers use it for strategic and efficiency improvements.
Step-by-step explanation:
The internal users of a company’s income statement would typically include investors and operation managers. Investors, who may be private investors or venture capitalists, use the income statement to assess the company’s profitability and make decisions about providing financial capital to the firm. Investors often have substantial information and control over the company, which reduces the problems of imperfect information. Venture capitalists, for example, often own a substantial portion of the firm and typically have better information than a typical shareholder.
Operation managers are internal users as well, as they require access to financial documents like the income statement for making strategic decisions, managing costs, and improving operational efficiency. Suppliers and creditors, while often interested in a company’s financial health, are typically considered external users since they do not participate in the day-to-day operations of the company.