Circular 645 Introducing The Income Statement 1

This publication is one in a series outlining the four basic financial statements used in business today. These statements are the balance sheet, the income statement, the cash flow, and the statement of change in financial position. A fifth publication shows how these statements link together and a sixth shows how to use the information provided by the statements for a simple business analysis. This series tries to keep things simple and assumes no prior experience with financial statements. The income statement and its essential features are outlined in this publication. This should provide the reader with sufficient information to complete a proper income statement. Farmers, ranchers, nursery and grove operators, extension agents, agricultura