Science Fair Project Encyclopedia
Net income
Net income is equal to the income that a firm can get after subtracting Cost of goods sold, sales discounts, sales returns and allowances (the above three items are all only for a merchandizing company) and expenses from the total revenue.
To make it simple:
Net income = Revenue - (Cost of goods sold - sales discounts - sales returns and allowances) - expenses
10-26-2009 08:16:03
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The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details