Training Guide

Income Statements

Training Guide

Income Statements

Topic: Accounting & Finance
Duration: 1 hr
Format: Remote or in person

What’s Covered

General description and structure
Revenue
Cost of sales
Selling, General & Administrative Expenses
Non-operating items
Income tax expenses
Measures of profitability

Before the Session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/income-statements/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Income Statements

The income statement shows whether and how a company made or lost money over an accounting period. This course describes the income statement and the common classifications of revenue and expenses you’ll see on it. It also explains different measures of profitability such as net income, EBIT and EBITDA.
Exercise

Income Statements
PDF

During the Session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

What are some of the other names for an income statement?
What does an income statement tell us?
How does an income statement differ from a cash flow statement?
How are revenue and expenses often categorized?
What does cost of sales include?
What are some examples of indirect costs?
What are non-operating items on an income statement?
How do you figure out a company’s gross profit? Its gross profit margin?
What’s EBIT? EBITDA?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the Session

To continue their learning, attendees can check out related courses in Hotshot’s Accounting & Finance topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.