Learn what net income means for businesses and individuals, how it's calculated, and why it's a crucial financial metric.

and expenses in order to calculate net income. Also referred to as a profit and loss statement. By combining these elements, the income statement illustrates just how much income your company ...

The breakeven point is the exact level of sales where a company's revenue equals its total expenses, meaning the business neither makes a profit nor has a loss. Every business faces a critical ...

COGS refers to the Cost of Goods Sold and covers all of the costs associated with producing and/or purchasing the goods that your business sells, for example ... loss sheet to calculate your effective ...

Financial statements are essentially the report cards for businesses. They tell the story, in numbers, about the financial health of the business. The information found on the financial statements ...

To calculate the company's total profit or loss you subtract the total costs from the sales revenue: \(\boldsymbol{total\,\,profit\,\,or\,\,loss\,\,=\,\,sales ...