Revenue Minus Expenses Minus Dividends
Net income total revenue total expense.
Revenue minus expenses minus dividends. You do not have any other deductible investment expenses. The increase in retained earnings was 70 million minus 50 million or 20 million. Net income 100 000 45 800. Net income represents income that may be reinvested in the firm or distributed to its owners.
Use a minus sign or parentheses for a net loss may 31 2016 june 30 2016 total assets 211 000 255. Assets liabilities revenue expenses dividends. A company has revenue of 50 000 the cost of goods sold is 15 000 operating expense 5 000 and loss from the operations of a discounted component is 1 200. Net income refers to the revenue a business makes during a given period minus all expenses.
So revenues and expenses then may be thought of as temporary subdivisions of owner s equity. Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses. 100 million net income 20 million change in retained earnings 80 million paid in dividends. The expanded accounting equation is derived from the common accounting equation and illustrates in detail the different components of stockholders equity of a.
Negative net income reduces a company s cash balance. You have no carryover of investment interest expense from the previous year. It is their expenses minus their social security income minus their income from part time work. Finally i m going to assume this household preparing to live off dividends has a 10 000 income from part time work.
Net income 54 200 net income formula example 2. Net profit refers to income received by a business during a given period minus cost of goods sold cogs and or operating expenses. Net income represents cash available to pay dividends. Net income represents sales minus operating expenses at a specific point in time.