This is where general overhead, administrative, sales, marketing, and some other expenses are listed. Nonoperating Income and Expenses. These are revenues and associated costs related to other than the company s core business. Common line items are interest income and interest expense. For anyone who has been gainfully employed, this is self-explanatory.
Taxes are the amount the government takes away from a company s profit.
This is often referred to as the company s bottom line. It is what is left after all of the costs, expenses, and taxes have been subtracted from all of the revenues. Notice if revenues are increasing or decreasing. The same is true for cost of sales and other expenses as a percent of net sales. An increase in expenses is not always a bad sign.