The formula for taxable income for an individual is a very simple prima facie and calculation is done by subtracting all the expenses that are tax exempted and all the applicable deductions from the gross total income. All income statements follow this basic format. Single-Step Income Statement Example The simplified income statement is known as the single-step To utilize this method of determining net income you must show the sum of your revenues gains and expenses and losses separately.
The income statement formula under multiple-step method can be aggregated as below.
The income statement is one of three statements. The purpose of the income statement is to provide the financial earnings performance of the entity over a specific period of time. Income Statement Formula is represented as Gross Profit Revenues Cost of Goods Sold. Start studying accounting income statement equation.