Gross Profit Income Statements provide a snapshot of how much money a business is earning in comparison to how much it spends. It’s not just about the total profit figure at the bottom line, but how that profit is generated throughout the entire operation. The statement looks at all sources of income, including sales revenue as well as other income such as interest and dividends, then subtracts all costs of goods sold, such as materials, labor, and manufacturing overhead. This leaves you with the figure representing the gross profits for the period, which is an important part of understanding the overall performance of the company.