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Multiply the hourly wage by the number of hours worked per week. Then, multiply that number by the total number of weeks in a year (52). For example, if an employee makes $25 per hour and works 40 hours per week, the annual salary is 25 x 40 x 52 = $52,000.
Meaning of statement of earnings in English an official document that is part of a companys financial results and gives details of its profit or loss for a particular period: During the boom years, companies put out exaggerated statements of earnings.
An earnings statement is a document that provides a detailed breakdown of an individuals gross pay and net pay for a specific period.
Steps to Prepare an Income Statement Pick a Reporting Period. Generate a Trial Balance Report. Calculate Your Revenue. Determine the Cost of Goods Sold. Calculate the Gross Margin. Include Operating Expenses. Calculate Your Income. Include Income Taxes.
Three of the main types of income are earned, passive and portfolio. Earned income includes wages, salary, tips and commissions. Passive or unearned income could come from rental properties, royalties and limited partnerships. Portfolio or investment income includes interest, dividends and capital gains on investments.
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On a typical income statement, youll see revenue (or net sales) first. Then various categories of expenses are subtracted in sequence: the cost of goods sold, operating expenses, depreciation, amortization, interest, taxes, and any other costs. The final result is the companys net income (or net earnings).
The Earnings section identifies earnings for the pay period. The Deductions section identifies deductions from the earnings; employer contributions for health and pension programs; applicable gross; and year-to-date amounts. Additional comments are located at the bottom of the statement.

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