The income statement is composed of various sections that relate to different aspects of the earnings process. The seven sections we generally identify with are:

1). Sales or revenues section,

2). Cost of goods sold section,

3). Non-operating section,

4). Income tax,

5). Discontinued operations.

6). Non-controlling interest and,

7). Earnings per share.

The statement of retained earnings serves to reconcile beginning of the period and end of the period accumulated and undistributed earnings.

Requirements

1). Using Securities and Exchange website (SEC.gov.) select a company that you may be interested in and review their Form 10K.

2). Download into a word document their income statement and submit it to the respective drop box for class discussion.