The P&L statement shows a company’s revenues, cost of goods sold, gross profit, operating expenses, and net income. Revenues are the money earned from selling products or services, while cost of goods sold is the cost of producing those products or services. Gross profit is the difference between revenues and cost of goods sold. Operating expenses are the costs of running the business, such as rent, salaries, and utilities. Net income is the profit or loss after all expenses have been deducted from revenues.