Apple Inc.

- Financial Statements

Income Statement - Apple Traveling Salesperson "Income Statement" Income Statement - Key Points:
($ in Millions Except Per Share Amounts) ($ in Thousands)
Current Current Revenue and expenses over a PERIOD of time (1 year, 1

Revenue: $ 200 Salary and Commissions: $ 250 Total sales all the way down to after-tax profit
Cost of Goods Sold: 50 Travel and Per-Client Expenses: 50
Gross Profit: 150 "Gross Profit": 200 NOT necessarily cash revenue and expenses - just anyth
corresponds to the period you're looking at
Operating Expenses: Personal "Operating Expenses":
Research & Development: 30 Food: 30 When Should an Expense Be On the Income Statement
General & Administrative: 40 Day-to-Day Transportation: 20
Total Operating Expenses: 70 Entertainment / Luxury: 20 Paying for something that lasts for 1 year or less
Total Operating Expenses: 70 Expense is tax-deductible
Depreciation: 10 Does NOT need to be a real cash expense (depreciation)
Stock-Based Compensation: 5 Depreciation of House: 20
Debt Interest - tax-deductible, corresponds to current pe
Operating Income: 65 Personal "Operating Income": 110 Repaying debt - not tax-deductible, lasts for many years
Interest Income / (Expense): 5 Savings Account Interest: 1
Other Income / (Expense): (5) Mortgage Interest Expense: (10) Depreciation - tax-deductible, corresponds to value lost
Pre-Tax Income: 65 Income from Side Business: 4 Buying a house (CapEx) - not tax-deductible, lasts for ma
Income Tax Provision: 32 Personal "Pre-Tax Income": 105
Income Taxes: 90 <--- Analogy breaks down here - in real-life can't deduct
Net Income: 33 personal expenses to reduce taxes
After-Tax Income: 15
Earnings Per Share: $0.33
Shares Outstanding: 100
 RIOD of time (1 year, 1 quarter, etc.)

fter-tax profit

nd expenses - just anything that

the Income Statement?

or 1 year or less

expense (depreciation)

orresponds to current period payment

ble, lasts for many years

rresponds to value lost in current period

-deductible, lasts for many years

in real-life can't deduct food and