Introduction To The Profit & Loss
⏱️ 15 min | This course was designed to give you an understanding of a business’ income statement, its function, and how to read and interpret it.
In part three of our three-part financial literacy series, we examine the profit and loss statement, also known as the income statement, providing a comprehensive breakdown of its components. Gaby, the instructor, offers in-depth explanations of income, cost of goods sold, and expenses within a company. These concepts are defined, accompanied by illustrative examples and various account types. Additionally, the equations that this statement uses to analyze operations such as profit margin, gross margin, etc. are reviewed. The information is cemented with a practical example of a company’s profit & loss statement including analysis. CEU/CPD: AHIP 0.25H | IHS 0.25H | SAC 0.25H | CAA 0.25H
Participants will achieve a comprehensive understanding of the components of an income statement, including income, cost of goods sold, and expenses. They will be able to define these elements, identify various account types within each category, and appreciate their significance in assessing a company's financial performance.
Participants will develop the ability to analyze and calculate essential profitability metrics, such as profit margins and net income, using the equations commonly employed in income statement analysis. Participants will familiarize themselves with how these metrics provide valuable insights into a company's operational efficiency and financial health.
Through a guided practical example of a company's profit and loss statement, participants will learn to apply their knowledge by interpreting and analyzing an income statement to evaluate a company's financial performance, enabling them to make informed decisions and recommendations related to business operations.
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