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Since aaron s revenues exceed his expenses he will show 132 500 profit.
Revenue net income expense. If aaron only made 50 000 of revenues for the year he would not have negative earnings however. Instead he would have a net loss of 17 500. The net revenue is what a company earns as a whole and the net income that the company is left with after bearing all the expenses and adding other sources of income. Income or net income is a company s total earnings or profit.
Example let s say that we have the gross revenue of 110 000 with a sales discount of 10 000. Aaron would compute his annual net income by subtracting total expenses 67 500 from total income.
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