Cost of sales income statement or balance sheet


The income statement is one of the three primary financial statements used to assess a company’s performance and financial position (the two others being the balance sheet and the cash flow statement). The income statement summarizes the revenues and expenses generated by the company over the entire reporting period. No balance sheet statement is complete (in my opinion) without an income statement to go along with it. As a small business owner, I find the income statement to be more useful in the general operation of the business, but the balance sheet is still a critical accounting tool that provides a key piece of information. Both kinds of cost are strictly income statement items; they aren’t reflected on a company’s balance sheet. Let’s take a look at each in a little more detail. Direct Costs. The Pine Furniture Company incurs direct costs every time it sells a piece of furniture. The direct costs could be incurred from different areas. This is done by dividing the company's net income by the total number of shares, which is listed on the bottom of the income statement. Balance sheet The balance sheet can tell you where a company ...