To prepare an income statement for December 31, 2024, compile all financial data related to revenue, expenses, and taxes, then apply the formula: Net Income = (Total Revenues + Gains) - (Total Expenses + Losses + Taxes). The income statement highlights the company's financial performance and profitability for the year.
To prepare the income statement for the year ended December 31, 2024, you would compile financial data including revenues, expenses, gains, and losses. Begin by listing your total revenue, then subtract the cost of goods sold (COGS) to find the gross profit. After that, you deduct all operating expenses to find operating income. Any non-operating income and expenses, such as interest or investment income, are accounted for next. Finally, deduct taxes to arrive at the net income.
The formula is as follows: Net Income = (Total Revenues + Gains) - (Total Expenses + Losses + Taxes).
For an accurate and precise income statement, you need details for each financial category which typically comes from a company's accounting records or financial data system. Without specific figures, it is not possible to provide the final answer in numeric terms. However, this explanation should help you understand the components that make up an income statement and how they are arranged.
The income statement provides a summary of a company's financial performance over a particular period, showing how revenue is transformed into net income.