Revenue Income Minus Expenses

Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses.

Revenue income minus expenses. Net income equal to revenues minus expenses. People often refer to net income as the bottom line as it is the last line item on an income statement. Therefore when a company is said to have top line growth the company s revenue is growing. Revenue is the total amount of income generated by a company.

For example if a store had 100 000 in sales but their expenses for rent employees supplies etc is 60 000 then they had a net income of 40 000. Net income is gross income minus taxes. Profit is directly related to products and services. Since revenue is the income earned by a company it is the income generated before the cost of goods sold cogs operating expenses capital costs and taxes are deducted.

This measures the amount of profits that remain in the business after all expenses have been paid for the period. Revenue is often referred to as the top line because it sits at the top of the income statement. To a business net income or net profit is the amount of revenues that exceed the total costs of producing those revenues. Revenues minus expenses equals income.

Gross income is basically revenues and gains minus expenses and losses. Net income is your revenues minus your expenses. Operating profit 116 million minus all other fixed and variable expenses associated with operating the business. Revenue is the income generated before any expenses are taken out.

The formula for net income is simply total revenue minus total expenses. Net sales gross sales customer discounts returns allowances gross profit net sales cost of goods sold operating profit gross profit total operating expenses net profit operating profit taxes interest net profi.