The Income Statement
“Now that we have seen where the company has been putting money into the business and how it has financed that investment, we need to find out how profitably the management is using all the assets, how fast the company is growing, and whether the growth is being supported by the operating profits of the company,” Holmes said. “The answers to these questions can be found in the Income Statement, which is sometimes referred to as the Profit-and-Loss Statement—P&L.”
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