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welcome to module six the income statement I am Donna Goethe a farm business and production management instructor at Western Technical College near La Crosse Wisconsin one of the main parts of my job is to work with farmers to determine what their financial picture looks like and to track that picture to see if it is heading in the right direction there are two worksheets that go along with this module the income statement please have these worksheets by you as we go through the training the first says balance sheet at the top and the second says income statement in this training we are going to go over several things including what does an income statement tell you as well as what is the difference between cash and accrual recording and how does the income statement reflect this we will also look at recording income and recording expenses accrual adjustments net profits depreciation and what can you learn from an income statement so what is an income statement it really tells you if y