![]() ![]() The resulting value, which is the operating income, is the total income of a company from its normal business functions. Other expenses included in this bracket are utilities, marketing, insurance, transportation, and depreciation of assets among others. Operating expenses are those that go toward administration costs, like the wages of employees that do not directly have anything to do with manufacturing the product. Operating Income: This is calculated by subtracting the operating expenses from the calculated gross profit. ![]() The cost of goods sold comprises the cost of direct labor and materials, any overhead expenses that went into manufacturing the products. The net sales includes the revenue from products and / or services sold after the deduction of returns, allowances, discounts, and damaged or missing items. Gross Profit: This is calculated by subtracting the cost of goods sold from the net sales.Related: Sample Profit and Loss Statement Form Example Monthly Profit & Loss Statement Form Profit and Loss Statement for Homeowners Free Profit and Loss For Human Services Parts of a Profit and Loss Statement Form ![]()
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