💰Income Statement Formulas
Net Income
Revenues - Expenses = Net Income
What It Means
The bottom line. What's left after everything.
Example
Total Revenues:$90,000
Total Expenses:$70,000
$90,000 - $70,000
Net Income = $20,000
→ The company made $20,000 profit
Related Formulas
Net Sales
Gross Sales - Sales Returns - Sales Allowances - Sales Discounts = Net Sales
Cost of Goods Sold (COGS) - Merchandising
Beginning Inventory + Purchases - Ending Inventory = COGS
Cost of Goods Sold - Manufacturing
Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods = COGS
Gross Profit
Net Sales - Cost of Goods Sold = Gross Profit
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