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Net income |
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Net income The company's total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses.
Net income A company's total revenue less its operating expenses, interest paid, depreciation, and taxes. For example, suppose a widget manufacturer earns $1,000,000 in total revenue. The widgets cost $200,000 to make and the administrative and payroll expenses total $250,000. The manufacturer also must subtract $50,000 in depreciation on the widget manufacturing equipment and pay $200,000 in taxes. The net income is stated as: $1,000,000 - $200,000 - $250,000 - $50,000 - $200,000 = $500,000. See also: Operating income. Net income. Net income is the amount of money a corporation has earned after subtracting all of the expenses of producing its goods or services from the income or revenue it has realized from sales of those goods or services. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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