Helpful Income Statement Image.

CFA Level I
#1

I think this is super helpful.

#2

I like it.

#3

good one. Thanks

#4

Can someone please elaborate what would constitute “other income and revenues”? Is it non-operating expense? I did google it. However, I couldn’t find anything.

Thanks

#5

Things like interest income or dividends from investments in securities, or income from unconsolidated subsidiaries.

#6

Thanks for your reply, S2000magician. However, if that’s the case, what’s financing cost? Aren’t those things financing activities? I am just curious.

#7

Financing cost is interest expense.

#8

Thanks S2000magician for your response. I am a bit confused.

Statement #1 other income and revenues has “Interest income or dividends from investments in securities, or income from unconsolidated subsidiaries.”

Statement #2 “Financing cost is interest expense”

How could interest expense appear in both the categories - “financing cost” and “other income and revenues”?

Can you please help me? I would really appreciate your response.

Thanks

#9

The first is interest income: you buy another company’s bonds, or Treasury Notes, or you lend money to another company, and you receive interest; that’s part of other income and revenues.

The second is interest expense: you issue bonds and pay interest on those bonds, or you have capital leases and pay interest on those leases; that’s part of financing cost.

You’re welcome.

#10

Oh I see. Thanks again for such a detailed response, S2000magician.

#11

Good to hear.

My pleasure.