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what is annual net income formula. Pretax Income 6915000. Pretax Income 8000000 560000 86000 12000 240000 130000 57000 0.
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Provides insight into a companys financial standing. Net Income or Net profit is calculated so that investors can measure the amount by which the total revenue exceeds the total expenses of the Company. Revenue Cost of Goods Sold Expenses Net Income.
One can use the gross profit to calculate net income gross profit is total revenue minus cost of goods sold.
The net income formula is calculated by subtracting total expenses from total revenues. Gross income Expenses Net Income. Net income NI also called net earnings is calculated as sales minus cost of goods sold selling general and administrative expenses operating expenses depreciation interest taxes and. After taking the companys 2 million in revenue and subtracting the 1750000 in total expenses it had over the year Company Y was left with a net income of 250000.
