Changes

The statement is divided into three sections: '''operating''', '''non-operating''', and '''irregular'''.

The statement is divided into three sections: '''operating''', '''non-operating''', and '''irregular'''.

The operating section is the most comprehensive as it discusses the profitability of the entity's main line of business.  It generally consists of a '''revenue''' line (sales price of goods or services) and one or more '''expense''' lines.  The expense lines consist of:

The operating section is the most comprehensive as it discusses the profitability of the entity's main line of business.  It generally consists of a '''revenue''' line (sales price of goods or services) and one or more '''[[expense]]''' lines.  The expense lines consist of:

*'''cost of goods sold (COGS)''', which could be (for a retailer) the purchase price of items held for resale, or (for a manufacturer) costs of raw materials, labor used to turn the materials into saleable items, and overhead (depreciation/amortization of buildings and equipment, utility costs, and such),

*'''cost of goods sold (COGS)''', which could be (for a retailer) the purchase price of items held for resale, or (for a manufacturer) costs of raw materials, labor used to turn the materials into saleable items, and overhead (depreciation/amortization of buildings and equipment, utility costs, and such),

*'''selling, general, and administrative (SG&A)''' expenses, which could be sales salaries/commissions, freight on shipped items sold, depreciation on stores and furnishings, and costs to operate overall company management and back-office (accounting, human resources) operations, and

*'''selling, general, and administrative (SG&A)''' expenses, which could be sales salaries/commissions, freight on shipped items sold, depreciation on stores and furnishings, and costs to operate overall company management and back-office (accounting, human resources) operations, and