Which financial statement typically displays the cost of goods sold?

The income statement is the financial statement that typically displays the cost of goods sold (COGS). This statement is designed to show a company's revenues and expenses during a specific period. The cost of goods sold is a critical component of this statement, as it represents the direct costs attributable to the production of the goods that a company sells. By subtracting COGS from total revenue, a business can determine its gross profit, which is vital for analyzing its financial performance.

In contrast, the balance sheet provides a snapshot of a company's assets, liabilities, and equity at a particular point in time, without detailing income or expenses. The statement of cash flows focuses on cash inflows and outflows, detailing how money moves within the business but not specifically discussing revenues or costs. The equity statement, often referred to as the statement of changes in equity, summarizes changes in shareholders' equity over time, but does not convey information about revenues, costs, or the financial performance of the company's operations. Thus, the income statement is the appropriate financial statement where the cost of goods sold is prominently featured.