
Impact of Accounting Principles on the P&L Statement The table below summarizes these two accounts: income and expenditures. There are two main categories of accounts for accountants to use when preparing a profit and loss statement.
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Download the Free TemplateĮnter your name and email in the form below and download the free Excel template now (see image below)! To learn more, read Amazon’s annual report. At this point, it provides a subtotal on the statement for Operating Income, also commonly referred to as Earnings Before Interest and Taxes (EBIT).īelow that, interest expense and taxes are deducted to finally arrive at the net profit or loss for the period. Its operating expenses consist of cost of sales, fulfillment, marketing, technology, G&A, and others. Looking at the above example, we see that Amazon posted a profit of $596 million in 2015, a profit of $2.4 billion in 2016, and a profit of $3.0 billion in 2017.Īmazon breaks down its total revenue into product sales and service sales. Image: CFI’s Amazon Financial Analysis Course.
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To learn how to analyze these financial statements, check out CFI’s Advanced Financial Modeling Course on Amazon.

Updated What is the Profit and Loss Statement (P&L)?Ī profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a company’s revenues, expenses, and profits/losses over a given period of time.
