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.

Related Topics:
Cost of goods sold - Expense - Revenue

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Net income is sometimes called the "bottom line" because it is typically found on the last line of a company's income statement.

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To make it simple:

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Net income = Revenue - Cost of goods sold - sales discounts - sales returns and allowances - expenses

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