Net income is your revenues minus your expenses.
For example, if a store had $100,000 in sales, but their expenses for rent, employees, supplies, etc is $60,000 then they had a net income of $40,000.
Wiki User
∙ 13y agoTrading account statement does not report net of income taxes or net of income.
Cash dividend paid has nothing to deal with net income as net income is calculated first and after that it is distributed. If cash dividend is received then it is included in net income calculations and increases the net income.
Net Income = Sales - ExpensesSo as many expanses net income will be lower.
when net income is zero
Net profit is not the same as net income. There are many things that can be deducted on a tax return form from net profit that reduce net profit down to net income.
Net income percentage = Net income / Revenue
Trading account statement does not report net of income taxes or net of income.
Net income percentage = Net income / Revenue
net income is gross income less expenses
Formula for net income is as follows: Net income = sales - expenses net income = 45000 - 25000 net income = 20000
when net income is zero
Net Income = Sales - ExpensesSo as many expanses net income will be lower.
Cash dividend paid has nothing to deal with net income as net income is calculated first and after that it is distributed. If cash dividend is received then it is included in net income calculations and increases the net income.
Net profit is not the same as net income. There are many things that can be deducted on a tax return form from net profit that reduce net profit down to net income.
If there is a net income, debit Income Summary. If there is a net loss, then credit it.
Gross income in normally higher then net income unless there is other income then normal business operations then net income may be higher then gross income.
Net Income = Sales - Gross profit Gross Profit - Cost of Production = Net Income