Example Corporation   Heading for Income Statement in Good Form
Statement of Income and Comhensive Income  
For the Year Ended December 31, 2007  
 
Sales Revenue    $      290,000,000   Revenue Secion
Cost of Goods Sold            175,000,000  
Gross Profit (Margin)    $      115,000,000  
 
Operating Expenses:  
General & Administrative Expenses            14,000,000   Operating Expenses:
Selling Expenses              8,000,000   Note: Expenses are on the left with the total on the right.
Amortization of Intangible Assets              2,500,000    
Write off of Goodwill              1,750,000    
Restructuring Costs            42,000,000    
Loss from Inventory Write-Down            13,000,000    
Total Operating Expenses              81,250,000    
Operating Income    $        33,750,000    
 
Other Income (Expense):   Other Income (expense) includes items that relate to operations but are not part of operations. Note: If ther is a single item it is places on the right. Multiple items are placed on the left with the total on the right.
Interest Income              7,500,000  
Interest Expense            (4,250,000)  
Gain on Sale of Operating Assets              7,825,000  
Loss on Sales of Operating Assets               (825,000)  
Total Other Operating Income(Expense)              10,250,000  
Income From Continuing Operations Before Income Tax Expense              23,500,000    
Income Tax Expense @ 40%                9,400,000   Income Tax from continuing operations is shown as a separate line item.
Income before Extraordinary Items    $        14,100,000  
 
Discontinued Operations:  
Operating Income (loss)from Discontinued Operation Net of 40% tax              4,000,000   Discontinued Operations usually have two components. The first is the gain (loss) frompart year operations.
Loss (Gain)on Sale of Discontinued Operations Assets Net of 40% tax          (15,000,000)   The second is the gain (loss) from the sale of the assets.
Loss (Gain) on Discontinued Operations            (11,000,000)   Both are always net of Income Tax.
Income Before Extraordinary Items    $          3,100,000    
 
Extraordinary Items:  
Gain from Early Sale of Bonds Net of 40% Tax            12,000,000   Extraordinary Items are itmes that are not expected to happen frequently but have a major (Material) impact on the current years operations. Items are report net of income tax
Loss From Flood Damage Net of 40% Tax            (3,000,000)  
Gain (Loss) from Extraordinary Operations                9,000,000  
Net Income    $        12,100,000  
 
Other Comprehensive Income (Loss):   Comprehensive Income is from non-owner tranactions. The gains and losses are outside the control of the owner. Items are reported net of income tax.
Foreign currency translation adjustment loss, net of 40% tax            (3,900,000)  
Unrealized gains on investment securities, net of 40% tax              4,200,000  
Total Other Comprehensive Income (Loss)                   300,000  
Comprehensive Income    $        12,400,000  
 
Earnings Per Share (1,000,000 shares issued and Outstanding)   Earnings per Share calcualtions are calculated on each component of income to show the investor the effect of items outside the income (loss) from continuing operations on shareholder equity.
Income (loss) From Continuing Operations                       14.10  
Loss (Gain) on Discontinued Operations                     (11.00)  
Gain (Loss) from Extraordinary Operations                         9.00  
Other Comprehensive Income (Loss)                         0.30  
Comprehensive Income Per Share                       12.40