The Statement of Earnings, also referred to as the Statement of Income, shows the source and amount of the corporation's income. At the top, the total expenses are subtracted from the total revenues to calculate the "Earnings from Operations" or "Operating Income". Below this figure is commonly a list of other income/expenses including income tax. These items will vary from report to report, and specifics can be found in the "Notes to Consolidated Financial Statements" that come after the statements.

Losses are noted by parentheses around the number. An example is "addition (reduction) of long term debt". These parentheses signify money paid out from the company. They are subtracted when calculating totals.

Some reports will include the "unrealized gain/loss on securities." This indicates the status of the corporation's invested stock that has not been withdrawn from the market. The figure is typically found in the "Other income/expenses" section. Depending on how the market is doing, some corporations will not include a loss in the Statement of Income.

The net income is found at the bottom of the statement after income tax has been subtracted. This is the profit made by the company in the given year, and serves as the best indicator of how the corporation is doing. Below it is the "net income per share", signifying the value of the stock. This is calculated based on the weighted average number of common shares distributed. In most reports, these statistics are shown for the previous two or three years so that shareholders can see changing trends.

Below is a sample Statement of Earnings:

			2000	1999
Revenues
	Operating Income		6,000,000	7,000,000
	Investment Income		4,000,000	4,200,000
	Earnings from Affiliates		10,000,000	12,500,000
	Natural Resources or 7(i) funds		500,000	600,000
	Rental		300,000	500,000
	Miscellaneous		200,000	200,000
		Total Operating Revenues =	21,000,000	25,000,000
Expenses
	Operating		5,000,000	5,500,000
	General and Administrative		6,000,000	7,000,000
	Rentals		500,000	500,000
	Natural Resources		500,000	1,000,000
		Total Operating Expenses =	12,000,000	14,000,000
		Operating Income =	9,000,000	11,000,000
Other Income (expense)
	Interest Expense		-400,000	-450,000
	Donations to _____		-100,000	-100,000
	Other		100,000	150,000
Net Income before income taxes			8,600,000	10,600,000
Income Tax Expense			-2,000,000	-2,600,000
Net Income			6,600,000	8,000,000
Net income per share of common stock			$5.00	$6.00
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