Income Statement Cheat Sheet → https://accountingstuff.com/shop The 'Income Statement', or 'Profit and Loss Statement' (P&L) is one of the three major Financial Statements, along with the Balance Sheet and the Statement of Cash Flows. In this tutorial, you'll find out what the Income Statement is and how you can use it to measure a business's financial performance. TIMESTAMPS 00:00 - Intro 01:02 - Income Statement Definition 01:10 - What a Basic Income Statement Looks Like 02:10 - An Analogy 02:37 - Expanding the Income Statement 03:16 - Direct Costs - Cost of Sales 04:48 - Gross Profit 05:10 - Indirect Costs - Overheads 06:15 - Operating Profit 06:42 - Comparative Periods 07:18 - Example - Imaginary Company 08:17 - Financial Ratio Analysis - Gross Profit Margin 09:34 - Interest Expenses & Tax 10:01 - Net Profit 10:12 - Gross Profit vs Operating Profit vs Net Profit.