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In terms of measuring income, income summarizes the financial effects of the business's operating activities. A main purpose of the income statement is to explain how income is determined with its important components reported as separate line items.

Distinguish between net income, comprehensive income, and continuing income. Cite and discuss examples of income statement items that create differences between these three income measures.

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Nestor Rutherford
Nestor RutherfordLv2
28 Sep 2019

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9.) Writing Skills Problem:

Income statements are presented for the Elf Corporation for theyears ending December 31, 2016, 2015, and 2014.

Elf Corporation Income Statements for theYears

Ending December 31, 2016, 2015, and 2014

(inmillions) 2016 2015 2014

Sales $700 $650 $550

Cost of goodssold 300 325 275

Grossprofit $350 $325 $275

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Operatingprofit $200 $150 $100

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