Financial Statements: The Income Statement

Welcome to the “Financial Statements: The Income Statement” video lesson intended to walk you through how to read and understand an income statement. This lesson is the second of four in the “Financial Statements” video course, which is meant to help you analyze financial statements and develop an executive mindset about your organization’s finances. During this lesson, you’ll learn what an income statement is and why it’s useful to analyze. Plus, you’ll explore the two key items on an income statement—revenue and expenses—and look at equations for calculating profit and gross margin. You’ll even navigate a sample income statement so you develop the skills necessary to interpret these financial documents independently. (Keywords: profit and loss statement, net worth, matching principle, financial acumen)