Revenue Total Expenses Net Income

Let us see the profit and loss statement of apple and the net income reported by the company.

Revenue total expenses net income. The net income total revenue total expenses. You need to pay employees buy raw materials buy treats for the cats who test your product and pay the medical bills of people wounded by grumpy kitties. In order words it shows how much revenue left after the payment of all the expenses of the business. Net income total revenue total expenses.

This business brought in revenues of 80 000 this quarter you don t get to keep all that cash. Snapshots from the annual 10 k filing of the company to sec is as below. Aaron would compute his annual net income by subtracting total expenses 67 500 from total income. Instead he would have a net loss of 17 500.

The net income. Net income is also known as net profit which is used to measure the total revenue amount that exceeds total expenses. People often refer to net income as the bottom line as it is the last line item on an income statement. Since aaron s revenues exceed his expenses he will show 132 500 profit.

Net income 22 500. Revenue total revenues expenses total expenses net income bu200603bx201603 from bx 2016 at james cook university. The formula for net income is simply total revenue minus total expenses. It s the amount of money you have left over to pay shareholders invest in new projects or equipment pay off debts or save for future use.

1 million minus 450 000 gives us total. We know the company s total revenue was 1 million so we can subtract net income from that to calculate the company s total expenses for this period. Net income is your company s total profits after deducting all business expenses. This figure indicates whether your business is profitable.

Some people refer to net income as net earnings net profit or the company s bottom line. By working out her net income simone is able to see that in spite of a rent increase in 2019 she made enough sales to increase her net profit from the previous year. Calculation of net income is done as the bottom line of the. For example company a has a sales revenue of 1 million and high expenses so it has a net income of.

Say you run an organic cat toothpaste company. Net income total revenue total expenses net income 96 000 71 000 net income 25 000. If aaron only made 50 000 of revenues for the year he would not have negative earnings however.