Listen to a Business English Dialogue About Statement of income
Mariah: Hi Katherine, have you heard about a statement of income?
Katherine: No, I haven’t. What is it?
Mariah: A statement of income, also known as an income statement or profit and loss statement, is a financial report that shows a company’s revenues, expenses, and net income over a specific period of time.
Katherine: Oh, I see. So, it’s like a summary of a company’s financial performance?
Mariah: Exactly! It provides valuable information about how much money a company is making and how efficiently it’s managing its expenses.
Katherine: Are there any key components of a statement of income?
Mariah: Yes, some key components include revenue, cost of goods sold, gross profit, operating expenses, and net income.
Katherine: How do investors and analysts use the statement of income?
Mariah: Investors and analysts use it to assess a company’s profitability, financial health, and its ability to generate earnings for shareholders.
Katherine: Can you give me an example of how to interpret a statement of income?
Mariah: Sure! If a company’s revenue is increasing while its expenses are decreasing, it could indicate improved profitability and financial performance.
Katherine: Thanks for explaining, Mariah. A statement of income seems like a valuable tool for understanding a company’s financial position.
Mariah: You’re welcome, Katherine. It’s an essential financial statement that provides insights into a company’s operations and profitability.