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Income Statement Glossary

Income	Income generated by the business
Cost of goods	What it costs the business to sell its inventory or service
Gross profit margin	Revenue minus cost of goods
Operating expenses	Overhead and labor expenses necessary to run the business
Total expenses	Sum of overhead and labor expenses
Net profit	Gross profit minus total expenses
Depreciation	The amount by which the value of a company asset has fallen in a given time period
Net profit before interest	Net profit minus depreciation
Interest	All interest on debts
Net profit before taxes	Net profit minus interest
Profit after taxes	Profit minus interest. This is also referred to as the bottom line.