General Income Statement Format and Types of Leverage

11-4

• 1994, HarperCollins Publishers

Copyright

Sales revenue

Less: Cost of goods sold

Gross profits

Less: Operating expenses

Earnings before interest and taxes (EBIT)

Less: Intersest

Net profit before taxes

Less: Taxes

Net profit after taxes

Less: Preferred stock dividends

Earnings available for common stockholders

Earnings per share (EPS)

Operating

Leverage

Financial

Leverage

Total

Leverage

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