Structure of the Income Statement (Estado de Resultados)
📌 The income statement must begin with its name: Estado de Resultados or Estado de Pérdidas y Ganancias (Income Statement or Statement of Profit and Loss).
📌 Include the Company Name and its official identification number (e.g., NIT in Colombia).
📌 Specify the period covered, typically starting from January 1st of a year through December 31st of the same year (e.g., January 1, 2018, to December 31, 2018).

Core Calculation Steps
📌 Start with Total Sales, then subtract Sales Returns (devoluciones en ventas) to arrive at Net Sales (Ventas Netas) or Operating Income.
📌 Subtract Cost of Sales (Costos de Ventas) from Net Sales to determine the Gross Profit (Utilidad Bruta).
📌 Subtract Operating Expenses (Gastos Operacionales)—which combine administrative and sales expenses—from Gross Profit to yield the Operating Profit (Utilidad Operacional).
📌 Add Other Income (Ingresos no operacionales, like selling scrap metal) to the Operating Profit to calculate the Profit Before Taxes (Utilidad antes de Impuestos).

Finalizing the Statement
📌 Subtract all applicable Taxes (Impuestos) from the Profit Before Taxes to arrive at the Net Income (Utilidad Neta).
📌 The Net Income is then distributed by subtracting amounts allocated for Legal Reserves and Retained Earnings (Utilidades Retenidas).
📌 The remainder after these allocations is the Profit Available to Shareholders (Utilidad Disponible para los Accionistas).
📌 The document concludes with signatures from the Legal Representative, Accountant, and Fiscal Auditor (if applicable).

Key Points & Insights
➡️ The initial section detailing total sales minus returns is sometimes optional, with many starting directly from Net Sales or Operating Income.
➡️ Other Income (like income from selling recyclable materials) is added to Operating Profit because it is not related to the company's primary business activity.
➡️ Net Income is not entirely kept by the owners; a portion must often be allocated to reserves for future company growth and investment before determining the final amount available to shareholders.
➡️ The completion of the statement requires official validation through the signatures of the Legal Representative, Accountant, and Auditor.

📸 Video summarized with SummaryTube.com on Nov 06, 2025, 16:46 UTC