Condensed Income Statement

A condensed income statement is a highly summarized income statement that groups revenues and expenses into a handful of major lines. A typical version shows net sales, cost of goods sold, gross profit, total operating expenses, operating income, interest and other items, income tax expense and net income, leaving out the detailed expense accounts behind each figure. Condensed income statements appear in quarterly reports on Form 10-Q, earnings press releases, annual report highlights and summaries prepared for boards or lenders. Because so much detail is combined, readers should use them alongside the full annual statements and notes. Also see Condensed Financial Statements and Condensed Balance Sheet.