NetSuite Applications Suite Income Statement Detail Report

The first section, titled Revenue, indicates that Microsoft’s gross (annual) profit, or gross margin, for the fiscal year ending June 30, 2021, was $115.86 billion. It was arrived at by deducting the cost of revenue ($52.23 billion) from the total revenue ($168.09 billion) realized by the technology giant during this fiscal year. Just over 30% of Microsoft’s total sales went toward costs for revenue generation, while a similar figure for Walmart in its fiscal year 2021 was about 75% ($429 billion/$572.75 billion).

As the formula includes additional shares outstanding, the diluted earnings per share is usually less than basic earnings per share. If a company buys a piece of machinery, the cash flow statement would reflect this activity as a cash outflow from investing activities because it used cash. If the company decided to sell off some investments from an investment portfolio, the proceeds from the sales would show up as a cash inflow from investing activities because it provided cash. A balance sheet provides detailed information about a company’s assets, liabilities and shareholders’ equity. The next line in the income statement, after net income, displays the average number of common shares of the company’s stock that are held by investors. Next comes the firm’s earnings per share, which is calculated by dividing net income by the number of shares.

Select the reporting period for the income statement

Events that would not be extraordinary as they occur regularly, although not yearly, are a severe freeze effecting crops in Florida or an earthquake in southern California. If a company has a debt-to-equity ratio of 2 to 1, it means that the company has two dollars of debt to every one dollar shareholders invest in the company. In other words, the company is taking on debt at twice the rate that its owners are investing in the company. The next line is money the company doesn’t expect to collect on certain sales. This could be due, for example, to sales discounts or merchandise returns.

The income statement may also be referred to as the profit and loss statement, statement of earnings, or statement of operations. You’ve probably heard people banter around phrases like “P/E ratio,” “current ratio” and “operating margin.” But what do these terms mean and why don’t they show up on financial statements? Listed below are just some of the many ratios that sample income statement investors calculate from information on financial statements and then use to evaluate a company. The third part of a cash flow statement shows the cash flow from all financing activities. Typical sources of cash flow include cash raised by selling stocks and bonds or borrowing from banks. Likewise, paying back a bank loan would show up as a use of cash flow.

Determine if you’ll be preparing a single-step or a multi-step income statement and follow those steps

In addition to account type, you can group section data by class, department, location, and if you are using NetSuite OneWorld, subsidiary. Be aware that the Allow Web Query option is not available for this report. Amount of income (loss) for proportionate share of equity method investee’s income (loss). Last but definitely not least is making sure your COGS is accurate and up-to-date. For example, making sure you’re regularly doing stock counts and you’re including every detail about storage, warehousing, logistics, etc.

In the footer of the report, you can select from filter lists to refilter report data. But to set yourself up for success, you’ll also need to think about your business name, finances, an operating agreement, and licenses and permits. Extraordinary items are events that occur infrequently and are unusual. They can include acts of God as long as they rarely occur in the area where the business operates.