Final answer:
An income statement for Oriole Corporation for the year ending December 31, 2022, covers revenues and expenses from January 1, 2022, to December 31, 2022. The statement begins with revenue, subtracts the cost of goods sold and operating expenses, and accounts for other expenses to calculate the net income.
Step-by-step explanation:
To prepare the income statement for Oriole Corporation for the year ending December 31, 2022, follow these steps. First, confirm the accounting period which is January 1, 2022, to December 31, 2022. Then begin with the opening section titled "Beginning Balances" although typically, an income statement does not start with a section named "Beginning Balances" as it usually starts with revenues. Instead, use a title such as "Revenues" for Section One. Subsequently, list all revenue streams and total them to find the gross revenue. Afterwards, subtract the cost of goods sold (COGS) to arrive at the gross profit. Following this, deduct operating expenses to calculate operating profit or income from operations.
Continue by subtracting any other expenses, such as interest and taxes, to determine the net income for the year. It is essential to distinguish between operating and non-operating items to ensure an accurate representation of the company's financial performance. Remember to follow Generally Accepted Accounting Principles (GAAP) or the appropriate financial reporting framework relevant to Oriole Corporation's location and industry.
Once all revenues and expenses have been accounted for and subtracted, you will arrive at the net income figure, which represents the company's financial performance over the specified accounting period.