Introduction to the Income Statement

Making money in a company isn't a straightforward process as scholars discover in this clip on the basic income statement. Sal explains what this is and lays out a scenario showing the various subtractions a company makes from their revenue to get the money actually paid to owners. He incorporates variable and fixed costs to get the gross profit and then further subtracts for the operating profit, pre-tax profit, and net income. Learners view a simple balance sheet and explore the return on assets ratio as well as a return on equity percentage.

Concepts

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net income, variable costs, balance sheet

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Additional Tags

return on equity, return on assets, income statement, business costs, variable costs, fixed costs, pre-tax income, net income, gross income, balance sheet, social studies

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Resource Details

Grade

Higher Ed

Subjects

Social Studies & History

1 more...

Resource Type

Instructional Videos

Media Length

15:27

Audiences

For Teacher Use

1 more...

Instructional Strategy

Flipped Classroom

Accessibility

Closed Captions

Usage Permissions

Creative Commons

BY-NC-SA: 3.0