INCOME STATEMENT

• ONE OF THE FOUR REQUIRED FINANCIAL STATEMENTS

• SHOWS REVENUE OFFSET BY EXPENSES FOR A PERIOD OF TIME GIVING NET INCOME

• PREPARED ON AN ACCRUAL BASIS, NOT A CHAS BASIS

• MUST BE POSITIVE OVER THE LONG RUN OR THE COMPANY WILL CEASE OPERATIONS

MANAGEMENT

• IT IS THE JOB OF MANAGEMENT TO KEEP THE INCOME STATEMENT POSITIVE

• THEY DO THIS BY CONTINUALLY TRYING TO RAISE REVENUE AND CONTINUALLY TRYING TO CUT EXPENSES

• IF MANAGEMENT DOES NOT SUCCEED IN THIS ALL THE WORKERS WILL LOSE THEIR JOBS AND THE INVESTORS WILL LOSE THE MONEY THEY PUT INTO THE COMPANY

INCOME STATEMENTXYZ COMPANY

FOR THE YEAR ENDED 12/31/10

• SALES XXX• LESS COST OF GOODS SOLD XXX• GROSS MARGIN XXX• OPERATING EXPENSES• SELLING EXPENSE XXX• ADMINISTRATIVE EXPENSE XXX• OTHER EXPENSES XXX• INTEREST EXPENSE XXX• INCOME BEFORE TAX XXX• LESS FEDERAL TAX XXX• NET INCOME XXX

• EARNINGS PER SHARE XXX

YAHOO FINANCE

• GO TO YAHOO FINANCE, TYPE IN AA FOR THE SYMBOL, CLICK ENTER AND THEN SCROLL DOWN TO THE LEFT HAND CORNER OF THE SCREEN AND CLICK ON THE INCOME STATEMENT FOR ALCOA.