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good day learners irrespective of which grade you in you are going to have to know what an income statement is you have to draw it up but very importantly youre going to also have to read it now your start with your studies always completing these income statements but as you work through the exercises youre going to come into situations where more and more youve got to be able to read and interpret this and therefore its very very important that you understand the information that the income statement is giving us remember we said at the beginning that in order to do our counting we need information that came through the bookkeeping process and that information is now summarized first of all into this income statement now the purpose of an income statement is to calculate the profits your business owner is making and an issue or a charity concern all businesses are there to make a profit but now when were looking at the profit there are actually three different types of profit th