Question

What does the income statement demonstrate for the organization?

Answer 1

The income statement demonstrates the following for the organisation.

1. The profitability of a company like the net profit margin, gross margin,etc are known.
2. The Sales, costs of goods and other cash expenses, non cash expenses like depreciation and depreciation policy of the firm.are known
3. The dividend payout and retained earnings information is received from income statement.

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