Join Earl Kay Stice for an in-depth discussion in this video Income statement example, part of Accounting Foundations.
Let's look at an actual income statement.…This is the income statement for Walmart…for the year ended January 31, 2013.…There you see the numbers right there…so this is for a 12-month period.…What we do when we look at an income statement…is we're usually going to look at two numbers first,…the top one and the bottom one.…Top one here is net sales.…That's the total amount that they sold…to you and me and other people around the world,…$466 billion.…By the way, that's the world record.…No company in the history of the world…has ever sold more than that,…and the only company that's ever going…to break that record is going to be Walmart…in the next year, 2014.…
So that's their sales, $466 billion.…Now take a look down at the bottom.…It's called here income from continued operations.…We've called it net income.…So that's the equivalent of net income.…It's a little bit over $17 billion.…That's the bottom line.…You've heard of the bottom line.…Well, that's where the phrase…bottom line comes from.…Top line is sales, bottom line is net income.…
- What is accounting?
- Working with balance sheets and income statements
- Determining the costs of products
- Performing break-even analysis
- Determining average and marginal tax rates
- Understanding tax deductions and credits
Skill Level Appropriate for all
1. Basics of Accounting
2. Financial Accounting
3. Managerial Accounting
4. Income Taxes
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