Final answer:
The income statement for Ladd Roofing Service summarizes the company's revenues, expenses, and net income for a specific period of time. It includes sections such as revenue, cost of goods sold, gross profit, operating expenses, operating income, and net income. The income statement is used to evaluate a company's financial performance.
Step-by-step explanation:
The income statement for Ladd Roofing Service is a financial statement that summarizes the company's revenues, expenses, and net income for a specific period of time. It shows how much money the company has earned and spent during that period, and whether it has made a profit or suffered a loss.
An income statement typically includes the following sections:
Revenue: This section includes the company's total sales or revenue.
Cost of Goods Sold: This section includes the direct costs associated with producing the company's products or services.
Gross Profit: This is the difference between the revenue and the cost of goods sold.
Operating Expenses: This section includes all other expenses incurred in running the business, such as salaries, rent, utilities, etc.
Operating Income: This is the difference between the gross profit and the operating expenses.
Net Income: This is the final profit or loss figure after taking into account all expenses and taxes.
The income statement provides important financial information about a company's performance and is used by investors, creditors, and other stakeholders to evaluate its financial health.