Income Statement

Discuss, in detail, the various components of the standard income statement. What does this statement tell you about a company? Locate a simple income statement on the internet, explain the various aspects and briefly discuss the financial health of the company, given only what you see on this statement.

Paul's Guitar Shop, Inc. Income Statement For the Year Ended December 31, 2015 Revenues Merchandise Sales Music Lesson Income Total Revenues: $24,8003,000 $27,800 Expenses Cost of Goods Sold Depreciation expense Wage expense Rent expense Interest expense Supplies expense Utilities expense Total Expenses: 10,200 2,000 750 500 500 500 400 Net Income 14,850 $12,950