A company's income statement is a financial statement that is used to report a company's financial performance over a reporting period.
The main goal of the income statement is to understand a business' total net come, by subtracting total expenses & losses from total revenue & gains.
Net Income = (Total Revenue + Gains) - (Total Expenses + Losses)
Why is it important?
The income statement shows how efficient operations and management team is at maximizing income while minimizing expenses.