Here's a simplified outline for creating an income statement ...
FIRST ...
Start with: Revenue (Sales) ... [what was the revenue in the period of interest?]
Subtract: Cost of goods sold (COGS) ... [how much did it cost to produce the products and services that were sold?
This Equals: Gross Margin
SECOND ...
Subtracct: Operating Expenses (including selling expenses and general & administrative expenses)
This Equals: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ... [Income from operations]
THIRD ...
Add or Substract: Other income and expenses
This Equals: Income before tax
FOURTH ...
Subtract: Provision for income taxes
This Equals: Income from continuing operations
FIFTH ...
Add or Subtract: Income from discontinued operations (net of tax)
This Equals: Income before extraordinary items and cumulative effect
FINALLY ...
Add or Subtract: Extraordinary items (net of tax)
Add or Subtract: Cumulative effect of a change in accounting principle (net of tax)
This Equals: Profit (net income)
Subtracct: Operating Expenses (including selling expenses and general & administrative expenses)
This Equals: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ... [Income from operations]
THIRD ...
Add or Substract: Other income and expenses
This Equals: Income before tax
FOURTH ...
Subtract: Provision for income taxes
This Equals: Income from continuing operations
FIFTH ...
Add or Subtract: Income from discontinued operations (net of tax)
This Equals: Income before extraordinary items and cumulative effect
FINALLY ...
Add or Subtract: Extraordinary items (net of tax)
Add or Subtract: Cumulative effect of a change in accounting principle (net of tax)
This Equals: Profit (net income)