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Net income

Net income is equal to the income that a firm can get after subtracting Cost of goods sold, sales discounts, sales returns and allowances (the above three items are all only for a merchandizing company) and expenses from the total revenue.

To make it simple:

Net income = Revenue - (Cost of goods sold - sales discounts - sales returns and allowances) - expenses


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01-04-2007 01:21:04