Chapter 4, Problem 14DQ

To determine

Financial statements:

This is an official record of financial performance and position of an organization. It includes balance sheet, income statement, statement of changes in equity and cash flow statement.

Gross profit:

It is an amount of profit which is made after deducting cost of goods sold from revenue amount. In other words, the formula to calculate positive gross profit is,

  $\text{Gross}\text{profit}=\text{Revenue}-\text{Cost}\text{of}\text{goods}\text{sold}$

To identify: The income statement of S company reports a gross profit figure or not.