Investopedia / Tara Anand Net Sales is the equivalent to revenue ... the top line because it appears at the top of the income statement. Costs are subtracted from revenue to calculate net income ...

The costs of sales figures include only direct expenses ... Operating profit is in the second section of an income statement. The operating profit is calculated by subtracting all of a company ...

By subtracting cost of sales from revenue ... Working from the top line items in the income statement, cost of goods sold is subtracted from revenue, and the difference is gross profit.

It's located on the bottom line of the income statement ... including cost of goods sold (which is listed as "cost of sales" and included in total operating expenses). This gives you the following ...