An income statement differs from a cash flow statement ... For service businesses, inventory includes supplies or spare parts -- nothing for manufacture or resale. Retailers and wholesalers ...

Information from the income statement is typically a major focus whenever a company reports its quarterly and annual earnings. It can be broken down into three parts: direct, indirect, and capital.

The income statement is a financial document that demonstrates the financial performance of a business based on its income and how this has changed over a period of time, usually 12 months.