NET OPERATING INCOME
The Income Statement format varies between companies. The COST AND EXPENSES section may have more or less detail than our example. Common variations may include combining
SELLING EXPENSES with GENERAL AND A DMINISTRATIVE EXPENSES or combining DEPRECIATION EXPENSES with COST OF LABOR AND MATERIALS
The remaining Income Statement accounts are as follows
INTEREST EXPENSES amount of interest paid on the company's loans, notes, and bonds during the period
EARNINGS BEFORE TAXES NET O PERATING INCOME minus INTEREST EXPENSES
TAXES amount of taxes paid by the company during the period. Many companies provide the total tax assessment percentage on the Income Statement.
NET INCOME BEFORE PREFERRED DIVIDEND amount of income available for distribution to shareholders; calculated as
EARNINGS BEFORE TAXES minus TAXES
PREFERRED DIVIDEND amount distributed to preferred shareholders during the period
NET INCOME TO COMMON amount available for distribution to common shareholders or for internal use
COMMON DIVIDEND amount distributed to common shareholders during the period
EARNINGS RETAINED amount held by the business to continue operations