Managerial accounting, a tool used for business decision-making, allows for different methods of calculating net income. The general formula is that sales minus costs equals net income, but there are ...

Net income seems straightforward: It is the result when expenses (administrative expenses, business expenses, interest expenses, operating costs and other expenses) are subtracted from revenue. This ...

When you are figuring out how well your company's doing, gross sales revenue is a poor measure. Net income, meaning the amount you have left after paying your bills, is a better measure of your ...

In order to determine their profitability, businesses look at their total net income relative to their total sales, or gross revenue. This figure, expressed as a percentage, is also known as the ...

Reporting taxes, applying for a loan and making a new company budget will require you to know how much money you bring in each year. Annual income is one of the most valuable metrics for quick, ...

Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...

One of the benefits of understanding how the income statement and balance sheet work together is that you can figure out missing pieces of information based on numbers elsewhere in the financial ...

Pre-tax profit is a firm's income before taxes, found on the income statement. Calculate pre-tax profit by adjusting net income for the effective tax rate. Alternatively, adjust operating income by ...

Every time Jake publishes a story, you’ll get an alert straight to your inbox! Enter your email By clicking “Sign up”, you agree to receive emails from Business ...

Feeling richer? The Federal Reserve thinks you are, whether it’s trickling down to your mood or not. Rising real estate values and high employment are boosting our collective net worth, according to ...