American Composite Corporation Income Statement Total operating revenues $2,262 The operations Cost of goods sold 1,655 section of the Selling,general,and administrative expenses 327 income statement Depreciation 90 Operating income $190 reports the firm's Other income 29 revenues and Earnings before interest and taxes $219 expenses from Interest expense 49 Pretax income principal $170 Taxes 84 operations Current:$71 Deferred:$13 Net income $86 Addition to retained earnings $43 Dividends: $43 15
15 American Composite Corporation Income Statement Total operating revenues Cost of goods sold Selling, general, and administrative expenses Depreciation Operating income Other income Earnings before interest and taxes Interest expense Pretax income Taxes Current: $71 Deferred: $13 Net income Addition to retained earnings $43 Dividends: $43 The operations section of the income statement reports the firm’s revenues and expenses from principal operations. $2,262 1,655 327 90 $190 29 $219 49 $170 84 $86
American Composite Corporation Income Statement Total operating revenues $2,262 The non-operating Cost of goods sold 1,655 Selling,general,and administrative expenses 327 section of the Depreciation 90 income statement Operating income $190 Other income 29 includes all Earnings before interest and taxes $219 financing costs, Interest expense 49 such as interest Pretax income $170 Taxes 84 expense. Current:$71 Deferred:$13 Net income $86 Addition to retained earnings $43 Dividends: $43 16
16 American Composite Corporation Income Statement Total operating revenues Cost of goods sold Selling, general, and administrative expenses Depreciation Operating income Other income Earnings before interest and taxes Interest expense Pretax income Taxes Current: $71 Deferred: $13 Net income Addition to retained earnings $43 Dividends: $43 $2,262 1,655 327 90 $190 29 $219 49 $170 84 $86 The non-operating section of the income statement includes all financing costs, such as interest expense