Condensed Income Statement - AccountingTools

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The Condensed Income Statement

A condensed income statement is simply an income statement with many of the usual line items condensed down into a few lines. Typically, this means that all revenue line items are aggregated into a single line item, while the cost of goods sold appears as one line item, and all operating expenses appear in another line item. A typical format for a condensed income statement is:

Revenues	$1,000,000
Cost of goods sold	350,000
Sales, general, and administrative expenses	580,000
Financing income and expenses	20,000
Net Income	$50,000

A condensed income statement is typically issued to external parties, who are less interested in the precise sources of a company’s revenues or what expenses it incurs, and more concerned with its overall performance. Thus, bankers and investors may be interested in receiving a condensed income statement.