What does an income statement primarily show?

The income statement primarily shows the company’s revenues and expenses during a specific period. This financial statement provides a detailed account of how much money the company earned (revenues) and how much it spent (expenses) within that timeframe, ultimately leading to the calculation of net income or profit. This information is essential for stakeholders, including investors and management, as it indicates the company's operational performance and profitability.

In contrast, marketing expenses are just one piece of the larger financial picture represented in the income statement and do not capture the overall performance. A list of the company’s assets and liabilities is found on the balance sheet, not the income statement. Forecasts of future sales are related to projections that may emerge from the analysis of past income statements, but they do not appear on the income statement itself, which only reports historical data. Thus, the income statement focuses on actual financial performance over a defined period rather than future predictions or detailed expense classifications.