- published: 17 Feb 2016
- views: 385
In business, net income (total comprehensive income, net earnings, net profit, informally, bottom line) is an entity's income minus cost of goods sold, expenses and taxes for an accounting period. It is computed as the residual of all revenues and gains over all expenses and losses for the period, and has also been defined as the net increase in shareholders' equity that results from a company's operations. In the context of the presentation of financial statements, the IFRS Foundation defines net income as synonymous with profit and loss.
Net income is a distinct accounting concept from profit. Net income can also be calculated by adding a company's operating income to non-operating income and then subtracting off taxes.
Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings. As profit and earnings are used synonymously for income (also depending on UK and US usage), net earnings and net profit are commonly found as synonyms for net income. Often, the term income is substituted for net income, yet this is not preferred due to the possible ambiguity. Net income is informally called the bottom line because it is typically found on the last line of a company's income statement (a related term is top line, meaning revenue, which forms the first line of the account statement).
Net income is a generally accepted accounting principle also known as profit. While net income doesn't paint the entire picture of a company's current financial situation, it is still a useful metric to know before investing in a company. In this video, I explain how to determine net income and how to use it to evaluate a company's financial standing. To sign-up for my Transformational Investing Webinar, visit: http://bit.ly/1KoyuXq Think you have enough money saved for retirement? Learn more: http://bit.ly/1Koytmp Don't forget to subscribe to my channel here: http://ow.ly/RNAnK _____________ For more great Rule #1 content and training: Podcast: http://bit.ly/1U6KrDd Blog: http://bit.ly/1OfhJJ9 Twitter: https://twitter.com/Rule1_Investing Google+: +PhilTownRule1Investing Pinterest: ...
What is net income, what does it measure, and why is it important to my business? What are the component parts? How is it figured? What other formulas will I need to understand in order to figure net income? How is it different than net margin or net profit? How does it relate to taxes?
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In this financial video definition, we explain the definition of Net Income, provide a clear example of the formula, and explain why it's an important concept in business, finance and investing.
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Accounting Principles - How to Determine Net Income or Loss
Brought to you by StratPad: Simple Business Plan App. Try it free at http://www.stratpad.com This video completes our look at the income statement. You'll learn about EBITDA, what it stands for and how to calculate it. You'll arrive at net income and finish off your income statement. http://www.stratpad.com/income-statement-ebitda-net-income/ Video Transcript Welcome back to the income statement. While you were gone, I just rewrote this and shortened some of the long words: Cost of goods sold has now become COGS and that's how people would pronounce it General and administrative is now G&A; Research and development is now R&D; Sales and marketing is now S&M; It just cleans it up a little bit. You know that this ($7,500) is called gross profit. Gross profit minus the tota...
http://www.DuncanLawOnline.com Gross income and net income are commonly mixed up. Gross income is looking at your total income before taxes, insurance, retirement contributions and any other deductions. Net income, therefore, is your actual take home pay. This distinction is important because it has a big impact on the Means Test when looking at a bankruptcy. Duncan Law, PLLC 628 Green Valley Rd. Suite 304 Greensboro, NC 27408 (336) 856-1234 http://www.DuncanLawOnline.com This video is meant for informational purposes only. Laws vary by jurisdiction so if you have a specific legal question be sure to contact an attorney in your area. This information does not create an attorney-client privilege and, although we don't view it as an advertisement, it may be considered an advertisement for...
Download workbook: http://people.highline.edu/mgirvin/ExcelIsFun.htm See how to: 1. Create Database with Revenue and Expenses data for Properties Owned using the Excel Table feature that will allow Net Income formulas to automatically update when new transactions are added. 2. Create SUMIFS function formulas that uses four criteria to Revenues and Expenses for each Property with and upper and lower date criteria. 3. See Relative, Absolute and Mixed Cell References in formulas. 4. Use Sheet References in formulas 5. See how to use the New Windows features to make entering Sheet reference easier.
Download files at: https://people.highline.edu/mgirvin/AllClasses/216_2003/216/busn216.htm Topics Covered in Video: 1. Stylistic Formatting a. Fill Color b. Font Color c. Borders 2. Format Cells Dialog box Number tab a. Number Formatting i. Currency 3. Delete a. For deleting cell content, use Delete key, not Right-click Delete. 4. Formulas with: a. Formula Inputs are in An assumption Table b. Equal Sign c. Relative Cell References d. Absolute Cell References e. * for Multiplying 5. Charts a. Insert Ribbon tab, Charts Group b. Column Chart c. Add Chart Title: Chart Tools Layout Ribbon tab, Labels group, Chart Title button 6. The beauty of Excel: When formula and chart inputs are changed, everything updates in the workbook!!! 7. Page Setup: a. Keyboard = Alt, P, S, P...
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Partnership net income allocation to partners & closing process for a a partnership, closing net income to partner capital accounts and draws to partner capital accounts.
Cost accounting for Cost-Volume-Profit Analysis: Understanding how Taxes effect the operating income (target net income & income taxes), net income is operating income plus non operating revenues minus non operating costs minus income taxes, to make net income evaluations , CVP calculations for target income must be stated in terms of target net income instead of target operating income, examines how Operating Income Changes with the Units Sold based on taxes paid (effect of taxes on CVP), what operating income & quantity sold is needed for target net income & income taxes, detailed calculation & discussion by Allen Mursau