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“A classified income statement has four different blocks that covers the information needed for the statement. The most interesting to me is the gross margin section. It is the cost of goods sold subtracted from the revenue. That’s how we get to the gross margin. This is very important information to gather the profit that is only gained from the services and the sale of goods. I’m glad I got the chance to learn about the classified income statements, because I must admit I didn’t know much about it. Does the net income after taxes reflect the changes in the equity section on the balance sheet?”
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