• Business School
    • Free MBA Admissions Consultation
    • MBA Admissions Services
    • School-Specific MBA Essay Tips
    • Executive MBA Essay Tips
    • MBA Admissions Calendar
    • Free Guides
    • Video Tips
    • Podcast
    • Selectivity Index
    • EMBA: The Ultimate Guide for Applicants
  • Medical School
    • Free Med School Admissions Consultation
    • Med School Admissions Services
    • Med School Admissions 101
    • Secondary Essay Tips (by School)
    • Student Interviews
    • Free Guides
    • Video Tips
    • Podcast
    • Selectivity Index
  • Law School
    • Free Law School Admissions Consultation
    • Law School Admissions Services
    • Law School Admissions 101
    • Selectivity Index
    • Free Guides
    • Podcast
    • Video Tips
  • Graduate School
    • Free Grad School Admissions Consultation
    • Grad School Admissions Services
    • Grad School Admissions 101
    • Free Guides
    • Video Tips
    • Podcast
  • College
    • Free College Admissions Consultation
    • College Admissions Services
    • Free Guides
    • Supplemental Essay Tips
    • Video Tips
    • Podcast
Accepted

Speak with an Accepted admissions expert for FREE!

Blog HomePodcastContact Us

Accepted Admissions Blog

Everything you need to know to get Accepted

July 6, 2009

Reading Time: < 1 minutes

MBA Math Monday: Income Statement

The MBA Math Monday series helps prospective MBA students to self assess their proficiency with the quantitative building blocks of the MBA first year curriculum.

The first and second MBA Math accounting exercises examined the balance sheet, which represents the sources and uses of a firm’s funds at a snapshot in time.  The first exercise focused on balance sheet structure and logic.  The second exercise focused on how transactions during a period in time must be appropriately processed to create a new balance sheet at the end of the period.

This exercise introduces the income statement, which is a financial statement that shows a firm’s revenues and expenses during a period of time, typically a quarter or a year.  The proverbial “bottom line” in business is the profit or loss at the bottom of the income statement.

Before you can interpret an income statement, you need to understand how its structure flows from revenue at the top to profit or loss at the bottom, with various categories of cost in between.

Exercise:

Suppose Lightspeed Industries has the following revenue and expenses (listed in alphabetical order) for 2008:

Revenues of $8,800,000
Cost of Goods Sold of $2,640,000
Depreciation Expenses of $1,200,000
Income Taxes of $1,452,000
Interest Expenses of $50,000
Other Expenses of $400,000
Sales, General, & Administrative Expenses of $880,000

Create an income statement with amounts in thousands

What is the value of Pre-Tax Income?

Solution (with audio commentary): click here

Prof. Peter Regan created the self-paced, online MBA Math quantitative skills course and teaches live MBA courses at Dartmouth (Tuck), Duke (Fuqua), and Cornell (Johnson).

Article by / MBA Admissions

Get Accepted!

Sign up for a free consultation today!

Which program are you applying to?

Most Popular Blog Posts

1. 7 Simple Steps to Writing an Excellent Diversity Essay

2. 4 Ways to Show How You’ll Contribute in the Future

3. How to Write About Your Research Interests

4. Tips for Answering the Yale University Supplemental Essays and Short Answer Questions [2022-2023]

5. When Will Medical Schools Give You an Answer?

6. Sample Essays from Admitted HBS Students

7. Tips for Answering the University of Pennsylvania Supplemental Essay Prompts [2022-2023]

8. Top STEM MBA Programs: A Comprehensive List and Overview of STEM-OPT Eligible B-Schools

Sample Essays

MBA Personal Statement Examples

Medical School Personal Statement Examples

Graduate School Personal Statement Examples

Law School Personal Statement Examples

College Application Essay Examples

 

This Site is Featured on GMATClub

Home Page Services and Prices MBA Med School Law School Grad School College

About Us Press Room Contact Us Podcast Accepted Blog
Privacy Policy Website Terms of Use Disclaimer Client Terms of Service

Accepted 1171 S. Robertson Blvd. #140 Los Angeles CA 90035 +1 (310) 815-9553
© 2022 Accepted

BBB A+ RatingStamp of AIGAC Excellence

Copyright © 2023 · Education Pro Theme on Genesis Framework · WordPress · Log in